Ontario pumps $1.2 million into Midland automotive parts manufacturer

Midland, Ont. -

The Ontario government is pumping $1.2 million into a Midland automotive parts manufacturer, which will help create 27 new jobs and retain 136 positions.

"Ontario is delighted to support the fantastic work that you're doing at ZF Automotive," Vic Fedeli, Minister of Economic Development, Job Creation and Trade, announced Thursday from the facility on Bay Street.

The grant is part of a $7.8 million investment by the company that would allow it to expand and upgrade its manufacturing capabilities for future customer needs.  The funding will also help keep jobs local that otherwise would have been lost to Mexico.

"If we don't have this money and this kind of investment, we can't compete with our competition," said ZF Automotive plant manager Lee Whyman. "Without that ability to compete, we have no real long-term future."

The Midland plant has employed thousands of residents in North Simcoe for decades but currently has about 300 workers.

Union president Larry Moreau has worked at the facility for 44 years and said the investment should mean longevity.

"Our members have a good future going forward, so that's what we're looking for," he said.

The announcement comes on the same day 26 employees at nearby Raytheon ELCAN were laid off.

The company said it had to make the "difficult but necessary decision" to assure it was positioned for long-term success.

Raytheon ELCAN said delayed bookings due to the pandemic impacted the company.

Meanwhile, Minister Fedeli said the automotive sector was "booming."

Whyman noted that the funding announcement is the first of many in the future to ensure ZF Automotive remains open and its workers stay employed.