Tecumseh Auto Parts Manufacturer Lands $726,000 Provincial Grant for Major Expansion
A Tecumseh-based auto parts manufacturer is moving forward with a significant $4.8 million expansion project, bolstered by a $726,000 grant from the Ontario government. Aalbers Tool & Mold, which specializes in plastic injection moulds for the automotive sector, will use the funding to acquire two new industrial machines, enabling 24/7 production and the creation of six new jobs.
Investment in Automation and Job Creation
The total investment of $4.8 million is directed toward purchasing two advanced industrial machines that will transform production capabilities. The first machine, already installed, allows the company to process raw steel blocks through multiple machining stages in a single operation, significantly reducing handling time and accelerating production. The second machine, an electrical discharge system for intricate finishing work, is scheduled for delivery next year.
"Once we start, we'll be able to run it around the clock," said Gary Aalbers, CEO of Aalbers Tool & Mold. "It will produce a huge amount of chips. We have an accessory machine which will compact those into small pucks and that will allow them to move around the clock. Otherwise, we would require a person to remove these chips as it produces."
The new machinery is expected to increase overall production by 10 percent, while freeing up existing workers for other roles within the plant. Among the six new positions, the company plans to hire an additional tool maker and program manager, expanding its current workforce of just over 100 employees.
Provincial Support and Economic Confidence
The $726,000 provincial contribution comes from the Southwestern Ontario Development Fund, part of the Regional Development Program. This fund is designed to assist companies in growing their operations through investments in innovation, skills development, market expansion, and job creation.
"What these investments mean is truly confidence in our economy," said MPP Andrew Dowie (PC – Windsor-Tecumseh) during a media event at the company. "The government of Ontario is a supporter, but the major investment still comes from the owners, and we have owners like Aalbers that are investing in their facilities, bringing more people on and going hard for the contracts that are out there."
Dowie emphasized the region's resilience, stating, "It demonstrates our resilience that we have here in Windsor and Essex County, that we're going to give no quarter, that we're leaving nothing on the table. We're going to compete with the best of them."
Eligibility and Industry Impact
To qualify for funding from the Southwestern Ontario Development Fund, companies must have operated for at least three years, employ a minimum of 10 people, commit to creating at least five new jobs, and invest $500,000 or more into a project. Aalbers Tool & Mold meets all these criteria, positioning it as a key beneficiary of the program.
The company manufactures plastic injection moulds used in automotive interiors, including components such as door panels, glove boxes, and consoles. Its client roster includes major automotive brands like Ford, BMW, Volkswagen, Stellantis, Honda, Mercedes-Benz, and Audi, as well as companies in other industries such as Bombardier.
Machines of this caliber typically cost between $2 million and $3 million each, highlighting the scale of the investment. The expansion not only enhances production efficiency but also strengthens the local economy by adding skilled jobs and supporting the automotive supply chain.
This strategic move underscores the ongoing growth and innovation within Ontario's manufacturing sector, as companies leverage government support to modernize operations and compete on a global scale.
