Archived — Government of Canada Invests In Jobs and Long-Term Growth in Guelph

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For immediate release
May 28, 2012

Guelph, Ontario — Thanks to help from a Government of Canada investment, Hitachi Construction Truck Manufacturing Ltd. will expand its Guelph plant, increasing production capacity and creating 244 new jobs. The announcement was made today by Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

"Our government's first priority is the economy- creating jobs, growth and long-term prosperity," said Minister Goodyear. "Thanks to the funding announced today, Hitachi will increase their capacity and introduce new technologies to reach new markets, which in turn will stimulate the local economy."

Through its Prosperity Initiative, FedDev Ontario is providing up to $6,647,000 to help Hitachi Construction Truck Manufacturing Ltd. to expand their plant, buy new equipment and open a product and advanced manufacturing testing centre in Guelph. The company manufactures off-road haul trucks primarily used in the mining industry. The expansion project will result in increased production, changes to the existing models to improve operating costs and reduced emissions as per new guidelines, allowing the company to meet the growing needs of clients around the world.

The benefits of the project will extend to other businesses in the region, as Hitachi buys many of its components from southern Ontario companies. This contribution is expected to create 244 additional jobs at Hitachi by the time the project is complete, as well as strengthen Ontario's manufacturing sector.

"We are very excited with the expansion of the Hitachi Plant in Guelph as this new assembly building is extremely important for ongoing success and future growth. With the recently launched Japanese-designed trucks, our goal is to increase the production volume for these new models as well as increase our current line of construction, quarry and mining size trucks. We believe this complete product offering will allow Hitachi continued growth and solidify our footprint here in Canada. On behalf of Hitachi, I would like to express our appreciation and thanks to the federal government for the funding granted for the plant expansion," stated Hideo Kitawaki, President of Hitachi Construction Truck Manufacturing Ltd.

As the Guelph plant is the head office for the company in the Americas, the new product line must be in compliance with US Environmental Protection Agency regulations regarding engine emissions. The Government of Canada's contribution is contingent on the successful completion of a federal environmental assessment of the proposed project under the Canadian Environmental Assessment Act.

For more information on FedDev Ontario's Prosperity Initiative and this project, please see the backgrounder.

Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. The Agency has launched a number of initiatives to create a Southern Ontario Advantage and place the region in a strong position to compete in the global economy. These initiatives are designed to encourage partnerships and support projects that help the region's businesses and communities become more competitive, innovative and diversified. To learn more, please visit www.feddevontario.gc.ca or call 1-866-593-5505.

Follow us on Twitter @FedDevOntario

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For more information, contact:

Michele-Jamali Paquette
Director of Communications
Office of the Honourable Gary Goodyear
613-947-2956

Media Relations
FedDev Ontario
519-585-2917


Backgrounder

Contribution to Hitachi Construction Truck Manufacturing Ltd.

Hitachi Construction Truck Manufacturing Ltd. (HTM) manufactures off-road dump trucks, primarily for use in the mining industry all over the world. It also supplies after market parts to support the maintenance and repair of the trucks. In 1994 Hitachi Construction Machinery Co. Ltd. (HCM), the applicant's parent company, began a joint-venture with the previous owner of Euclid Trucks and finally took 100 per cent control of the operations in 2000. In 2004, the company officially changed its name to Hitachi Construction Truck Manufacturing Ltd. but continues to produce some equipment using the technology developed by Euclid. HCM was involved in the production of Japan's first mechanical excavator more than 50 years ago.

HTM has its North American headquarters in Guelph and is the sole supplier of Hitachi mining dump trucks for North America, South America, parts of Europe and Africa.

FedDev Ontario is providing HTM with a repayable contribution of $6,647,000 towards total project costs of $32,959,000 through the Prosperity Initiative for the company's expansion project that involves:

  • Expanding the plant from 20,000 square meters to 33,000 square meters to allow for a reconfigured and optimized production process, and additional office and parking areas to accommodate the expected growth of its labour force;
  • Purchasing new technology and equipment such as welding robots, overhead cranes, a machine centre and a paint centre, which means adding highly skilled positions;
  • Establishing a product and advanced manufacturing testing centre to test prototype components, as well conduct tests on warranty claims. The data will then be used to help improve production quality and product designs.

It is expected that production capacity and manpower at the plant will double over the next three years. It will also have a positive impact on the environment as Hitachi Ltd. has made a public commitment to reduce its carbon footprint by 500 million tons by 2025.

Fore more information on Hitachi, visit http://www.hitachi-c-m.com/global/index.html.

Prosperity Initiative

FedDev Ontario's Prosperity Initiative is designed to encourage businesses, not-for-profit organizations and post-secondary institutions in southern Ontario to undertake projects that will result in a more productive, diversified and competitive economy.

Funding is available for projects that:

  • enhance productivity by accelerating the adoption of new technologies, processes and skills that enhance the region's businesses and sectors;
  • diversify the regional economy by increasing the number of new industries or opportunities with the potential to have long-term impacts on regional economic diversity; and
  • build a competitive advantage in the region by creating or expanding economic clusters and enhancing their global competitiveness.

Applications for funding are being accepted and assessed on an ongoing basis. For more information and to apply, please refer to the program guidelines available on the FedDev Ontario website at www.feddevontario.gc.ca.

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