Archived — Minister Goodyear Announces Job Creating Investments in St. Thomas Area Businesses

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Minister Gary Goodyear announces funding of more than $650,000 for 3 businesses at Reaction Distributing in St. Thomas, Ontario

The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), with Joe Preston, MP for Elgin–Middlesex–London, announced three businesses will receive a contribution of more than $650,000 under FedDev Ontario's Southern Ontario Development Program at Reaction Distributing in St. Thomas, Ontario. Also depicted (centre) is funding recipient Ron DeWeger, President of GCW Custom Kitchens, with two GCW employees. Source: FedDev Ontario

For immediate release
February 8, 2010

ST. THOMAS, ON — Three small- and medium-sized businesses in the St. Thomas area will be expanding their operations and upgrading technology, thanks to an Economic Action Plan investment of more than $650,000. The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), made the announcement this morning at Reaction Distributing Inc. in St. Thomas.

"By investing in this industry-rich community, we are helping to strengthen the economy and give local businesses the resources they need to grow," said Minister Goodyear. "This is another example of our government's commitment, through our Economic Action Plan, to create jobs and support the people, communities and businesses of southern Ontario.

"This funding will have a direct impact on local businesses and residents, with the creation of a total of 12 new jobs," said Joe Preston, MP for Elgin–Middlesex–London. "I'm pleased our contribution will boost economic activity and attract investment for the St. Thomas area."

FedDev Ontario is providing a repayable contribution of $397,936 to Reaction Distributing Inc., a leading manufacturer of solid waste handling equipment for the waste handling and recycling industries. With this contribution, the company will upgrade and modernize the plant, equipment and systems; provide training for existing staff; and develop additional export markets including the United States and Mexico. Implementing this project will result in the creation of six full-time jobs at Reaction Distributing Inc. For a list of all projects announced today, please refer to the backgrounder.

"This funding approval is great news as it will allow us to improve our competitive edge in the marketplace, while offering superior technological solutions to our clients," said Larry Vine, President of Reaction Distributing. "Investing in training and technology upgrades allows us to maintain a leadership position in our market."  

These projects are among more than 60 that the Government of Canada intends to support through the Southern Ontario Development Program.

For additional details on this program, please refer to the backgrounder, visit the FedDev Ontario web site at www.southernontario.gc.ca, or call 1-866-593-5505. For additional information on Canada's Economic Action Plan, visit www.actionplan.gc.ca.

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For media enquiries:

Gary Toft, Director of Communications, Office of the Honourable Gary Goodyear, 613-943-7599

Media Relations, FedDev Ontario, 613-954-5543


Backgrounder
Southern Ontario Development Program (SODP)

Announced in Canada's Economic Action Plan, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) was established to deliver federal economic development programs to support the priorities of workers, businesses and communities in Southern Ontario. Budget 2009 allocated $1 billion over five years for the new Agency.

The Southern Ontario Development Program was established as a core program of FedDev Ontario. It will build upon the assets and strengths of communities to create an environment where businesses can thrive and maximize southern Ontario's potential to succeed in the knowledge-based economy.

Funding under this program will go towards projects that can stimulate local economies and enhance the growth and competitiveness of local businesses and communities. Approximately $100 million has been allocated to the program in 2009–10, including the following:

  • Nearly $63 million through a general intake process;
  • $20 million through an intake for the food and beverage processing sector;
  • $15.75 million for the Canadian Manufacturers and Exporters' SMART Program; and
  • $1.6 million for the Ontario Chamber of Commerce's Export Market Access Program

The following are contributions to companies in the St. Thomas area:

Approved Projects under the Southern Ontario Development Program (SODP) in the St. Thomas Area
Funding Recipient Project Title

Federal Commitment (up to $)

GCW Custom Kitchens Inc. Purchase of New Machinery to Increase Efficiency and Productivity 170,578
Reaction Distributing Inc. Modernization of Plant and Equipment with Related Staff Training 397,936 (over two years)
Zimmer Air Services Inc. Leasehold Improvements and the Acquisition of New Equipment 85,251
Total 653,765

For more information, please visit the FedDev Ontario website at www.southernontario.gc.ca or call 1-866-593-5505.

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