McGuinty Government Invests In Life Sciences Innovation



    First-In-World Production Of Cattle Vaccine Will Create Jobs, Protect
    Environment, Enhance Food Safety

    BELLEVILLE, ON, Dec. 18 /CNW/ - The McGuinty government is investing
$10 million in Bioniche Life Sciences Inc.'s expansion of its Belleville
facility to a state-of-the-art vaccine manufacturing plant, Sandra Pupatello,
Minister of Economic Development and Trade announced today with Leona
Dombrowsky, Minister of Agriculture, Food and Rural Affairs.
    "We're celebrating another first for Ontario," said Pupatello. "This
investment will help Bioniche Life Sciences become the first company in the
world to produce its unique cattle vaccine and deliver it to national and
international markets. This is a great success story for Bioniche, and is
another major win for Ontario's life sciences sector."
    Bioniche Life Sciences Inc.'s E. coli vaccine prevents the colonization
of the bacteria in the digestive system of cattle and substantially reduces
the amount of E. coli shed in the environment through waste, potentially
reducing the contamination of water supplies and commercially sold beef. The
company will invest $107 million to expand its Belleville facility to
manufacture its bovine E. coli cattle vaccine and other animal vaccines.
    The new facility will be built to handle highly infectious organisms,
such as avian influenza, and have the capacity to increase production of
vaccines in times of emergency.
    "We can't eliminate infectious bacteria from our environment entirely,
but we can help reduce the harm that E. coli O157:H7 causes to people's health
and Ontario's food industry," said Graeme McRae, President and CEO of Bioniche
Life Sciences Inc. "We are the first company in the world to produce and
distribute this vaccine, and manufacturing it in large scale wouldn't have
been possible without the support from the Ontario government."
    "Today's announcement will help Bioniche bring animal-vaccine expertise
to Ontario," said Leona Dombrowsky, Minister of Agriculture, Food and Rural
Affairs. "That is good news for our agri-food industry, for our economy, and
for our environment."
    The $10 million Bioniche Life Sciences Inc. investment is provided under
the Ontario government's Advanced Manufacturing Investment Strategy (AMIS).
The $500-million strategy provides repayable loans, interest free for up to
five years, to support investments in technology and innovation. The
innovative projects supported by this strategy will generate more than
$720 million in new investment and support the creation or retention of about
3,500 jobs.
    The government is now accepting proposals for AMIS round five, with a
submission deadline of February 14, 2008. For eligibility requirements and an
application package visit www.ontariocanada.com (click on the "Programs and
Services" link).

    
    AMIS is part of the Ontario government's manufacturing response and
competitiveness strategy. Key initiatives of the strategy include:
    -   Next Generation Jobs Fund - A $1.15 billion fund aimed at creating
        high-value jobs, reducing greenhouse gases and spurring significant
        new investment in high potential areas of Ontario's economy including
        clean automotive, environmental technologies, biotech, ICT and
        digital media

    -   Ontario Automotive Investment Strategy - A $500 million initiative
        that has leveraged more than $7 billion in new investment and created
        thousands of high-value jobs in Ontario's auto sector

    -   Eliminating the Capital Tax on January, 2008 for corporations
        primarily engaged in manufacturing and resource activities; providing
        a 21 per cent Capital Tax rate cut for all businesses retroactive to
        January 1, 2007, on the way to full elimination in 2010; and
        increasing the small business deduction threshold to $500,000 from
        $400,000 - retroactive to January 1, 2007.

    Disponible en français

                            www.ontariocanada.com



              INNOVATION KEY TO FUTURE OF ONTARIO MANUFACTURING
    

    Ontario's manufacturing sector

    Manufacturing underpins the provincial economy and employs about one
million people, representing some 16 per cent of Ontario's total employment.
In fact, among North American jurisdictions, Ontario is the second largest
employer in the manufacturing sector - only California has more manufacturing
employees. The Canadian Manufacturers and Exporters estimate that every $1 of
manufacturing output generates $3 in total economic activity.
    Domestic manufacturers face challenges stemming from a global industry
restructuring and increased competition from low-cost jurisdictions such as
China and India. Investments in research and development, advanced technology
and innovation are considered essential for Ontario manufacturers to compete
in this environment and secure the sector's long-term prosperity.

    Advanced Manufacturing Investment Strategy

    The Advanced Manufacturing Investment Strategy was launched in December
2005 to encourage companies to invest in leading-edge technologies and
processes that will increase productivity and competitiveness. The 
$500-million strategy stimulates private sector investment by offering loans,
which are interest-free for up to five years, covering up to 10 per cent of
eligible project costs, to a maximum of $10 million per project.
    As part of the 2007 Ontario Budget, Finance Minister Greg Sorbara
announced reduced project thresholds of either 100 jobs created/retained or
$25 million invested to enable even more companies to benefit from the
program. The program is open to all manufacturing sectors and focuses on
innovation, use of advanced technology or materials, research and development,
waste reduction and energy conservation.
    The government is now accepting proposals for AMIS round five, with a
submission deadline of February 14, 2008. For eligibility requirements and an
application package visit www.ontariocanada.com (click on the "Programs and
Services" link).
    The projects announced so far under the strategy will generate more than
$720 million in new investment and support the creation or retention of about
3,500 jobs, over a five-year period.

    
    AMIS projects include:

    -   Bioniche Life Sciences Inc., Belleville (December 18, 2007) - Plant
        expansion to support the commercial production of its bovine E. coli
        O157:H7 vaccine, which will bring innovation-driven high technology
        animal vaccine manufacturing expertise to Ontario. A loan of
        million supports a total project investment of $107 million.

    -   Dofasco, Hamilton (August 24, 2007) - Upgrading to pulverized coal
        injection (PCI), which will replace coke and oil during blast furnace
        carbon input. PCI will reduce production costs and increase
        competitiveness. A loan of $6.05 million supports a total project
        investment of $60.5 million.

    -   Toyota Boshoku, Woodstock (August 22, 2007) - Construction of a new
        plant to manufacture front and rear seats, interior door trim, carpet
        and headliners for Toyota Motor Manufacturing's plant in Woodstock. A
        loan of $8.7 million supports a total project investment of
        $87.3 million.

    -   Ferrero Canada Ltd., Brantford (August 21, 2007) - Creating a
        Confectionary Centre of Excellence by expanding its production
        capacity and investing in leading technologies and processes new to
        North America. A loan of $5.5 million supports a total project
        investment of $55 million.

    -   Toyotetsu Canada Inc., Simcoe (August 7, 2007) - Construction of a
        new assembly plant to stamp, weld and assemble automotive parts for
        Toyota Motor Manufacturing plants in Cambridge and Woodstock. A loan
        of $7.15 million supports a total project investment of
        $71.5 million.

    -   Skyjack Inc., Guelph (May 14, 2007) - Creation of a Centre of
        Excellence to facilitate industrial research and development,
        prototyping, testing and commercialization of new aerial work
        platforms and materials handling equipment. A loan of $2.48 million
        supports a total project investment of $24.79 million.

    -   Roxul Inc., Milton (March 15, 2007) - Plant expansion and development
        of new commercial, industrial and residential insulation products
        that use recycled scrap material from the steel and construction
        industries. A loan of $10 million supports a total project investment
        of $103.7 million.

    -   Koolatron Corporation, Brantford (March 7, 2007) - Development of new
        products, including a large mobile cooler and cordless mosquito trap,
        using energy-efficient thermoelectric power. A loan of $2.34 million
        supports a total investment of $23.4 million.

    -   Flakeboard Company, Sault Ste. Marie (March 1, 2007) - Development of
        new manufacturing processes and commercial applications for wood-
        alternative materials used in kitchen cabinets and furniture. A loan
        of $1.6 million supports a total investment of $16.0 million.

    -   FAG Aerospace Inc., Stratford (February 20, 2007) - Research and
        development into improving the manufacture of precision bearings for
        the aerospace industry. A loan of $1.78 million supports a total
        investment of $17.8 million.

    -   Diamond Aircraft Industries, London (June 23, 2006) - Development of
        a single-engine, five-seat jet aircraft. A loan of $10 million
        supports a total investment of $106.4 million.

    -   Procter & Gamble Inc., Brockville (June 23, 2006) - Development of a
        new generation of quick-cleaning homecare products. A loan of
        $3 million supports a total investment of $30 million.

    Disponible en français

                            www.ontariocanada.com
    






For further information:

For further information: Flavio Volpe, Minister Pupatello's Office,
(416) 325-6907; Dave Bauer, Communications Branch, (416) 325-8773

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