Toyotetsu Canada is an automotive parts manufacturer that develops body, chassis, and functional parts for Toyota vehicles. With operations in Simcoe, Ontario, Toyotetsu Canada is an integral member of Toyota’s supply chain. The parts produced at this facility supply Toyota’s assembly facilities in Cambridge and Woodstock, Ontario, where the Lexus RX and RAV4 models are produced.
Recently, Toyotetsu Canada was awarded nearly $1.2 million in Ontario government grants through the Southwestern Ontario Development Fund (SWODF). This automotive funding will support a $29.4 million project that relocates innovative hot stamping work from Somerset, Kentucky, to Simcoe, Ontario. Through this relocation of manufacturing processes, Toyotetsu is forecasting the creation of an additional 100 Simcoe-area jobs.
The company’s relocation of hot stamping processes means fewer auto parts will need to be imported from the Kentucky plant. Toyota’s Canadian assembly plants will have better access to products and will reduce transport times, leading to higher productivity and a more reliable value chain. By purchasing and implementing this equipment in Canada, the supplier will be able to greatly strengthen their relationship with Toyota and build a highly-integrated Ontario supply chain.
$1.2 in Automotive Technology Funding Awarded for Hot Stamping Machines
Ontario is a growing automotive manufacturing market that currently supports over 700 suppliers and five auto assemblers. With close proximity to major American auto markets, and a provincial government that attracts and incentivizes auto manufacturer growth, it’s seen as a top global market to expand and thrive in.
These are some of the major reasons why Toyota supplier, Toyotetsu, relocated hot stamping operations from Kentucky to Ontario. By bringing this manufacturing method north of the border, the company will be able to produce parts necessary for the Lexus RX, which further strengthens Toyota’s value chain in Ontario. More parts can now be produced in Ontario, which avoids importing and shipping costs, ultimately making it more economically sustainable for Toyota to maintain local production.
To complete this project, Toyotetsu will invest a total $29.4 million to install a main 3,000-ton stamping machine and another 1,000-ton stamping machine at their Simcoe facility. The Government of Ontario is supporting the investment with nearly $1.2 million in funding through the Southwestern Ontario Development Fund (SWODF).
The Southwestern Ontario Development Fund provides government funding contributions in support of up to 10-15% of eligible project costs.
Toyotetsu’s hot stamping equipment will also be an integral source of parts for Toyota’s next-generation 2019 RAV4 vehicles. As production ramps-up for the RAV4, Toyotetsu will be at full capacity and able to meet the high demand for parts by a Tier 1 OEM.
Hot Stamping: Automotive Manufacturing Technology
Hot stamping is an innovative manufacturing process that enables automotive parts to be stronger and lighter than when traditional methods are used. Through the process, metals are heated to extreme temperatures, stamped, and left to cool and harden. This results in an incredibly durable, lightweight part that can be efficiently mass-produced.
About the Southwestern Ontario Development Fund (SWODF)
The Southwestern Ontario Development Fund is an Ontario government funding program designed to support large-scale capital investments. The program is used to offset up to 15% of eligible expenses related to facility expansion, equipment purchases and installation, and employee skills development. It’s commonly used to attract strategic projects which improve productivity and increase long-term provincial employment.
SWODF supports Ontario-based businesses with up to 10-15% of eligible project costs (to a maximum $5 million) in Ontario government grants and loans.
The SWODF program offers an open call for applications, which means businesses with eligible projects can apply at any time. Companies interested in applying for funding can contact Mentor Works to learn more about their eligibility and how to best navigate the application process.
Access Ontario Government Funding for Automotive Manufacturing Technology
Hot stamping machines are one type of automotive manufacturing equipment that can become less expensive through government funding; however, the Ontario government actively invests in a wide range of innovative equipment and manufacturing processes.
Download the Top 4 Trends in the Canadian Automotive Sector white paper to learn about automotive innovations that are a high-priority for government funding.