North Sydney Auto-Parts Plant Expands
A $45-million expansion is creating more than 100 jobs at Tesma Precision Finished Components (Tesma PFC) in North Sydney.
Tesma PFC, a division of Tesma International, produces transmission components. It has operated on Cape Breton Island since 1987 and currently employs 215 people at its plant in the Northside Industrial Park.
The project includes acquisition of a neighbouring building in the industrial park and the purchase of production equipment that will enable Tesma PFC to produce accumulator and case extension components for two General Motors contracts.
The building is the former IMP site at 93 Memorial Drive. The project has already created 55 jobs and is expected to generate another 55 by next March 31. It is estimated that the project will result in 65 indirect jobs, as well as $1.7 million per year in direct and indirect taxes.
The total estimated cost of the project is $45 million. The Government of Canada through Enterprise Cape Breton Corp. (ECBC), will contribute $2 million in the form of a conditional loan which will be forgiven if job targets are met. ECBC will also make a $500,000 repayable contribution and Human Resources Development Canada is contributing $608,000. The Province of Nova Scotia will support the project with $2.5 million by way of a payroll rebate. Tesma PFC will invest the remaining $36.8 million.
"This is an investment in diversifying Cape Breton’s economy," said Tourism and Culture Minister Rodney MacDonald, on behalf of Economic Development Minister Gordon Balser. "Tesma PFC is a good company, creating high-end jobs for more than 300 Nova Scotians in an area of high unemployment.
"The company’s own significant investment in the project is a testimony to the talent and skill of the workforce and its commitment to maintaining a strong operation in Cape Breton," Mr. MacDonald added.
"This company has proven itself to be a valuable addition to the business community and the Government of Canada has recognized its potential for further growth," said Robert Thibault, Minister of State for Enterprise Cape Breton Corp. and the Atlantic Canada Opportunities Agency. “With this project, Tesma PFC is making another significant investment in this community and the economy of Cape Breton Island. The Government of Canada is pleased to partner in this investment.”
Mr. Thibault also spoke on behalf of Jane Stewart, Minister of Human Resources Development Canada.
"Tesma PFC takes great pride in expanding its operation on Cape Breton Island, which has been in place since 1987," said Manfred Gingl, Tesma’s president and chief executive officer. “The support and co-operation we received from all levels of government and the community has contributed to our decision to proceed.”
Tesma''s primary business is the production of engine, transmission and fuel system components for the automotive industry. It operates 23 manufacturing facilities in North America, Europe and Asia as well as two research centres. It employs approximately 3,700 people.
The company is proceeding with two contracts currently in place with General Motors for components to be produced at the expanded plant. Prospects for additional job creation will be enhanced as a direct result of the acquisition of the die-cast equipment.
Federal funding for this project was provided for in the February 2000 budget and is therefore built into the existing financial framework. This project has been reviewed to ensure that Human Resources Development Canada’s funding is in compliance with the department’s improved administration of grants and contributions programs.
Enterprise Cape Breton Corp. offers programs in support of economic development initiatives and is responsible for delivering ACOA programs in Cape Breton and the Mulgrave area.