[Palmerston, ON] — Today, Matthew Rae, MPP for Perth-Wellington announced that Hammond Manufacturing Company LTD will receive $3,971,250 through the Southwestern Ontario Development Fund (SWODF) to expand their Palmerston facility from 97,000 sq. ft. to 182,000 sq. ft.
“Our government will be there to support our small businesses across Ontario during this economic trade war, including right here in Perth-Wellington,” said MPP Rae. “This nearly $4 million investment will support Hammond Manufacturing’s continued growth in Palmerston, helping protect 128 good-paying local jobs and strengthen our local economy.”
The facility expansion represents an overall investment of $26,475,000 will support increased automation, including a new spot-welding cell and increased painting capacity in Palmerston, Ontario. In addition to the spot-welding cell, the expansion will include the purchase of two punch laser machines, a powder coat paint line, brakes, storage racks, and other supporting equipment.
This funding is expected to support Hammond Manufacturing in meeting anticipated sales and operational growth for the next five years. Hammond Manufacturing is also anticipated to generate annual savings through reduced scrap levels. The facility expansion project will create approximately 30 new jobs and retain approximately 98 jobs.
“The support provided by the Government of Ontario has allowed Hammond Manufacturing to accelerate investments that strengthen our manufacturing capabilities and enhance our ability to serve customers across North America. These investments are helping us expand our capacity, improve productivity, remain competitive within our industry, and position the company for sustainable long-term growth” said Rob Hammond, CEO of Hammond Manufacturing Company Limited.
“Hammond Manufacturing has a strong history of investing and growing right here in Ontario,” Rae added. “Through the Southwestern Ontario Development Fund, our government is supporting companies like Hammond as they continue to expand and invest in new technology and create good-paying jobs for workers and families in rural Ontario.”
Hammond Manufacturing specializes in the design and manufacture of electrical and electronic enclosures, server racks and cabinets, outlet strips, small enclosures, and low-voltage electronic transformers. Hammond’s electrical enclosures are used to protect equipment in industrial and commercial settings, while its server racks and cabinets are designed for IT and data centre infrastructure. The company also offers outlet strips for power distribution, small enclosures for housing electronic components, and electronic transformers for low-voltage applications.
Ontario is investing over $250 million through its Regional Development Program to help manufacturers across the province grow while supporting distinct regional priorities. To date, Ontario has supported more than 215 projects through the program, leveraging more than $2.8 billion in new investments and helping to create over 5,900 jobs.
QUICK FACTS
- The government launched the Regional Development Program (RDP) for eastern and southwestern regions of Ontario in November 2019. Through this program, businesses and municipalities can get financial support and guided access to a range of complementary services and supports.
- In 2022, the Advanced Manufacturing and Innovation Competitiveness (AMIC) stream of the RDP was launched to support advanced manufacturers across the province. Ontario is now providing additional funds to enhance the AMIC stream that will help more firms with the financial support and tools needed to improve competitiveness, while strengthening essential supply chains.
- The government continues to provide tax support to Ontario manufacturers by continuing to offer the Ontario Made Manufacturing Investment Tax Credit to eligible businesses.
- Additionally, Ontario has launched a new $150 million Ontario Together Trade Fund to assist local businesses in taking advantage of new interprovincial trade opportunities.