Federal Government Injects Massive Twenty Million Dollar Investment into Manufacturers and Innovation Projects Across London and Chatham-Kent Region Canada

Canada’s federal government has rolled out a major investment package worth more than $20 million aimed at strengthening manufacturing, innovation, and agri-food capacity across the London and Chatham-Kent regions in Southern Ontario.

The announcement was made on Friday, May 15, 2026, by the Honourable Evan Solomon, who also oversees the Federal Economic Development Agency for Southern Ontario.

The funding is being distributed to eight businesses and organizations to help them scale operations, modernize production systems, and better withstand shifting global economic pressures.

A Push to Modernize Manufacturing and Advanced Production

A significant share of the funding is going into advanced manufacturing firms looking to upgrade their capabilities.

Among the biggest recipients is AarKel Tool & Die Inc., a Wallaceburg-based company dating back to 1977, which is receiving $8.5 million to develop dedicated gigacasting tooling and testing systems for automotive production.

Another major recipient, Five Star Tool & Die Ltd., is securing $834,464 to diversify its machining operations, while Ritch-Meyer Machine & Tool Inc. is receiving $672,563 to expand production capacity with advanced equipment for automotive and industrial clients.

Attica Manufacturing Inc. in London will use its $750,000 allocation to modernize precision machining systems for high-reliability components used in complex industries.

Infrastructure, Engineering, and Materials Innovation

Beyond traditional manufacturing, the funding also supports infrastructure innovation.

Atlantic Industries Limited, based in Thorndale, has been awarded $332,551 to advance engineered steel bridge technology, improving long-span and high-capacity designs used across North America and international markets.

Meanwhile, Select Finishing in Wallaceburg will receive $250,000 to modernize and digitize coating operations, improving efficiency in E-coat, powder coat, and liquid finish systems used in automotive-grade production.

Clean Manufacturing and Life Sciences Expansion

In London, Starlim North America Corporation is set to receive $1 million to construct a new 10,000-square-foot cleanroom facility.

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The company specializes in liquid silicone injection molding, a key process used in mobility and life sciences industries.

This expansion is expected to support advanced production and help the company develop next-generation technologies for its core markets.

Strengthening the Agri-Food Innovation Ecosystem

A major portion of the funding—$8 million—is going to the Western Fair Association, a long-established not-for-profit agricultural organization founded in 1887.

The investment will expand and modernize The Grove Innovation Hub, an agri-food incubator launched in 2019.

The facility provides small and medium-sized food producers with access to production space, cold storage, and scaling infrastructure.

The goal is to help local firms grow, enter new markets, and build resilience in the face of supply chain disruptions and international trade pressures.

Impact and Consequences

This investment package is expected to have several immediate and long-term effects on the region’s economy.

It strengthens Ontario’s advanced manufacturing base at a time when global supply chains are under pressure and automation is reshaping industrial production.

By supporting tooling, machining, and clean manufacturing upgrades, the program helps companies stay competitive in high-value sectors like automotive, aerospace, and life sciences.

It also reinforces agri-food innovation, ensuring that smaller producers can scale operations rather than remain limited by infrastructure gaps.

Employment is another key outcome. Many of the funded projects are expected to sustain and create skilled jobs in engineering, machining, production, and food processing.

What’s Next?

With funding now announced, each recipient is expected to move into the implementation phase—upgrading facilities, acquiring equipment, and scaling production capabilities.

Over the next several months, progress updates will likely focus on construction milestones, equipment deployment, and early productivity gains.

At a broader level, this investment signals continued federal interest in regional economic development tied to innovation, automation, and supply chain resilience.

Summary

The federal government is injecting over $20 million into eight organizations across London and Chatham-Kent to boost manufacturing, infrastructure innovation, and agri-food development.

The funding is designed to help companies modernize operations, expand capacity, and compete more effectively in global markets.

Bulleted Takeaways: Backgrounder

• Over $20 million invested in Southern Ontario businesses and organizations
• Announcement made by Evan Solomon
• Administered through Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
• Eight recipients across manufacturing, infrastructure, and agri-food sectors
• Largest single investment: $8.5M to AarKel Tool & Die Inc.
• Major agri-food investment: $8M to Western Fair Association’s Grove Innovation Hub
• Focus areas include gigacasting tooling, clean manufacturing, bridge engineering, and food production scaling
• Expected outcomes: job creation, modernization, export competitiveness, and supply chain resilience