Hamilton economy to benefit from construction of Canada's largest bakery

Canada's Economic Action Plan creates jobs, invests in innovative production plant

HAMILTON, ON, Feb. 17 /CNW/ - The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), and His Worship Fred Eisenberger, Mayor of the City of Hamilton, announced today that Hamilton will become home to Canada Bread Company's new, state-of-the-art production facility. The announcement came after the City of Hamilton and Canada Bread Company Limited reached an agreement in principle to purchase land for construction in a special City Council meeting this afternoon. The Government of Canada will contribute $2 million towards pre-engineering and design activities to build the world-class bakery.

"Our government is committed to creating jobs and supporting the people, communities and businesses of southern Ontario," said Minister Goodyear. "This project will benefit residents of Hamilton and the region by stimulating the local economy and bring hundreds of jobs to the area."

"We are thrilled to be the new home to Canada's largest bread maker," said Mayor Eisenberger. "This investment by Canada Bread is a major economic boost for Hamilton bringing jobs and helping to transform our local economy."

"We are very pleased to be growing our presence in Hamilton by establishing a world-class bakery facility," said Richard Lan, President and CEO, Canada Bread. "This city is a great location to support our continued growth with a skilled workforce, excellent infrastructure, and ready access to markets. These benefits collectively led to our decision."

"Our community is excited to see Canada Bread move into the North Glanbrook Industrial Business Park, creating jobs for hard-working families in Greater Hamilton," said Dean Allison, MP for Niagara West-Glanbrook.

Canada Bread will be the first anchor tenant in the North Glanbrook Industrial Business Park and will invest over $100 million to construct a 375,000 square foot bakery facility in Hamilton. The new world-class facility will feature leading-edge equipment, best-in-class technologies and sound environmental principles that will ensure high standards of operating efficiency and environmental management. Canada Bread's investment in a single, modern, efficient facility in Hamilton will ensure it remains an industry leader as Canada's leading value-added bakery business. The company's investment will support up to 300 plant jobs and will create approximately 120 construction related jobs during the construction phase of the project.

This is one of a number of projects announced recently that will benefit from funding under the food and beverage intake of the Southern Ontario Development Program. For additional details on this program, please refer to the backgrounder.

    
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                                 Backgrounder   
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                     Southern Ontario Development Program
    

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is providing a $2 million repayable contribution to Canada Bread Company Limited under the Southern Ontario Development Program. With this funding, Canada Bread will carry out pre-engineering and design activities to construct a new production facility in Hamilton, Ontario. The design of the new facility will integrate modern equipment, best-in-class technologies and sound environmental principles to ensure it operates to the highest standards of operating efficiency, quality assurance and environmental management.

Announced in Canada's Economic Action Plan, FedDev Ontario was established to deliver federal economic development programs to support the priorities of workers, businesses and communities in Southern Ontario. Budget 2009 allocated $1 billion over five years for the new Agency.

The Southern Ontario Development Program was established as a core program of FedDev Ontario. It will build upon the assets and strengths of communities to create an environment where businesses can thrive and maximize southern Ontario's potential to succeed in the knowledge-based economy.

Funding under this program will go towards projects that can stimulate local economies and enhance the growth and competitiveness of local businesses and communities. Approximately $100 million has been allocated to the Southern Ontario Development Program in 2009-10, including the following:

    
    -   Nearly $63 million through a general intake process;
    -   $20 million through an intake for the food and beverage processing
        sector;
    -   $15.75 million for the Canadian Manufacturers and Exporters' SMART
        Program to fund an estimated 300 projects that will help small- and
        medium-sized manufacturers increase their productivity and
        competitiveness in the global economy; and
    -   $1.6 million for the Ontario Chamber of Commerce's Export Market
        Access Program to help southern Ontario businesses that would like to
        increase their sales internationally.
    

For more information, please visit the FedDev Ontario website at www.southernontario.gc.ca or call 1-866-593-5505.

For further information: Gary Toft, Director of Communications, Office of the Honourable Gary Goodyear, [phone]; Media Relations, FedDev Ontario, [phone]; Michael Kirkopoulos, Corporate Communications, Office of the City Manager, City of Hamilton, [phone] x 5598