Four Mauricie businesses to carry out expansion or start-up projects

Government of Canada awards nearly $3 million in financial assistance to Xylo-Carbone, ADF Diesel, Acier Rayco and Microbrasserie À la fût

SAINT-TITE, QC, Jan. 19, 2018 /CNW Telbec/ - Canada Economic Development for Quebec Regions (CED)

Businesses need to be able to rely on adequate resources to create and commercialize innovative products. In 2017, the Government of Canada adopted an ambitious plan to support innovative Canadian businesses. As a true economic driver, innovation is the key to Canada's success because it generates growth that benefits businesses and communities.

Two well-established businesses and a cooperative, as well as a start-up enterprise, can improve or develop their production capacity and expand thanks to financial contributions supporting projects that will generate total investments of more than $16 million in the region. These investments will create some 50 jobs.

The repayable contributions of $2,856,500 were announced today by the Honourable François-Philippe Champagne, Member of Parliament for Saint-Maurice–Champlain and Minister of International Trade, acting on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for CED.

Xylo-Carbone is receiving a $1,200,000 contribution for the acquisition of production equipment, while ADF Diesel, À la fût, coop de travail brassicole and Acier Rayco have been granted contributions totalling $1,656,500 to acquire leading-edge equipment and expand their production plants.

The funding awarded by the Government of Canada through CED's Quebec Economic Development Program (QEDP) will help the businesses reach their growth objectives.

Quotes

"With this support from the Government of Canada, four Mauricie enterprises will continue to promote regional expertise in Canada and abroad. These are high-performance, forward-looking businesses that contribute to the economic growth of our region and Canada and create jobs for the middle class."

The Honourable François-Philippe Champagne, Member of Parliament for Saint-Maurice–Champlain and Minister of International Trade

"As Minister of Innovation, Science and Economic Development, my goal is to help businesses grow and innovate so that they can become more competitive and create good-quality jobs and wealth for Canadians. That is why we are supporting these four enterprises, whose successes benefit the region and the Canadian economy overall." 

The Honourable Navdeep Bains, Minister responsible for CED

Quick facts

• CED is one of the six regional development agencies under the responsibility of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development.
• For more information on CED's key directions until 2021, consult Strategic Plan 2021 or visit www.dec-ced.gc.ca.

For more information on the projects, please see the attached backgrounder.

Backgrounder

 

Proponent	Contribution – Investments – Project description
Xylo-Carbone Inc. (English website under construction)	Repayable contribution of $1,200,000 out of a total investment of $7,590,000 The project consists in supporting the start-up of Xylo-Carbone, which will develop high value-added biocarbon-based products made from low-grade roundwood residues. The trend towards bioproducts as a partial or total replacement of petrochemicals and dirty fossil coal is contributing to the success of this new business and its position in the clean tech sector. CED's contribution is going towards production equipment, which was designed and developed by strategic partners, including the Centre d'études des procédés chimiques du Québec at collège Maisonneuve, Innofibre and the Université du Québec à Trois-Rivières. Incorporated in 2016, the Saint-Tite business plans to capture the North American market, mainly the United States and Canadian markets.
ADF Diesel Saint-Stanislas Inc.	Repayable contribution of $987,500 out of a total investment of $4,050,000   The project consists in increasing and diversifying the business's production capacity. ADF Diesel will expand its main building to make room for new cutting-edge equipment that will allow it to broaden the range of engines for which it provides full service.   This project will help the company meet the requirements of a new developing market: oversize machinery. CED's assistance will go towards the purchase of equipment and expansion of the building. ADF Diesel specializes in the machining, reconditioning, sale and distribution of diesel engines and engine parts. Founded in 1982, the business has 78 employees and is the head office and manufacturing centre of Groupe Fournier Diesel Inc., a steadily growing holding company that has nine branches (including eight in Quebec), 285 employees and 39 divisions across Canada.
À la fût, coop de travail brassicole (website in French only)	Repayable contribution of $500,000 out of a total investment of $2,696,698 The project consists in supporting the expansion of this Saint-Tite microbrewery production plant. À la fût, coop de travail brassicole purchased land adjacent to its current facilities for the construction of a new building that houses a new production room. It also acquired new production equipment. CED's assistance went towards the purchase and installation of this new equipment. À la Fût microbrewery was created in 2005 and has around 40 employees. It produces draft, canned and bottled beer, which it distributes to bars, restaurants and specialized retailers in Quebec. The coop, which also runs a pub, plans to expand into the United States in the very near future.
Acier Rayco (2016) Inc. (website in French only)	Repayable contribution of $169,000 out of a total investment of $1,690,000   The project consists in improving the business's productivity and production capacity. To this end, Acier Rayco has purchased strategic production equipment and expanded its plant. In addition, the company has invested in completing its business succession plan. CED's assistance went towards the acquisition of new equipment and part of the plant expansion.   This Saint-Tite SME has been incorporated since March 2016 and employs 18 people. It is the result of the merger of Acier Rayco Inc. and Aciers G.M. Inc., which now make up its two divisions. The business specializes in the manufacture and processing of metal parts and the distribution of a variety of products (culverts, drain pipes, rebar, guard rails, concrete trusses and so on).   The SME is part of the value chain for a number of major contractors, including Hydro-Québec, Cirque du Soleil, Solotech, Produits forestiers Arbec and Groupe S3I. Its clientele also includes a number of cities, municipalities and construction companies.
Summary
Number of projects:		4
Number of jobs created:		47
CED contributions:		$2,856,500
Total investments generated by these projects:		$16,026,698

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SOURCE Canada Economic Development for Quebec Regions

Media Relations, Canada Economic Development for Quebec Régions, Tel.: [phone], Email:mailto:[email protected] [email protected]