Innovative manufacturer Verbom increases productivity

Investment project valued at more than $19 million in Estrie

SHERBROOKE, QC, April 13, 2018 /CNW Telbec/ - Canada Economic Development for Quebec Regions (CED)

The governments of Canada and Quebec have granted nearly $11 million in financial contributions to Verbom to support an investment project at its sheet metal processing plant in Sherbrooke. The project will help create around 100 jobs in the Estrie region.

Verbom can rely on $4.8 million in support from the Government of Canada, while the Government of Quebec is granting the enterprise a loan of $6.1 million through the ESSOR program.

The Honourable Marie-Claude Bibeau, Member of Parliament for Compton-Stanstead and Minister of International Development and La Francophonie, acting on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development (ISED) and Minister responsible for Canada Economic Development for Quebec Regions (CED), as well as Stéphane Billette, Minister for Small and Medium Enterprises, Regulatory Streamlining and Regional Economic Development, acting on behalf of Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy, made the announcement today.

It should be remembered that, out of this total amount, the Government of Quebec had granted a loan of $3.6 million to the enterprise in February 2017 to support the first phase of this project, namely expanding the Verbom plant in Sherbrooke to implement a production line for aluminum auto body parts for the Tesla Model X, a fully electrical propulsion sport utility vehicle. The Government of Canada had awarded two financial contributions totalling $3.8 million to the company to help it complete this phase. An initial contribution of $2.6 million was granted in April 2016 through ISED's Automotive Supplier Innovation Program and a second repayable contribution of $1.2 million was awarded by CED in January 2017 through the Quebec Economic Development Program.

Verbom then added a second phase to this project, which involves the acquisition of specialized equipment so that the business can produce larger aluminum auto body parts and increase its productivity. The company plans to manufacture the largest aluminum auto body part using a high-speed aluminum thermoforming process.

The second phase, which brings the total investments to $19.43 million, provided the impetus for the Government of Quebec to add $2.5 million to the 2017 loan and CED to award a new repayable contribution of $1 million through the Quebec Economic Development Program.

Quotes

"Innovation, know-how and high-quality jobs are part of the same equation. Verbom has amply demonstrated this and keeps pushing the boundaries that make this company an authority in the transportation sector. I am pleased about the financial support provided by CED, which recognizes the tremendous potential of this enterprise, and I encourage Verbom to continue down this path." 
The Honourable Marie‑Claude Bibeau, Member of Parliament for Compton–Stanstead and Minister of International Development and La Francophonie

"The second phase of this project shows the passion of the Verbom team and its determination to remain competitive and perform at a high level. As a government, we are always proud to be associated with dynamic Quebec businesses that, like this one, demonstrate innovation and excellence in all their achievements."  
Stéphane Billette, Minister for Small and Medium Enterprises, Regulatory Streamlining and Regional Economic Development

"We are very excited about supporting Verbom, which has been contributing to the economic vitality of the Estrie region for 40 years. This project will create some 100 jobs at the Sherbrooke plant, while placing the company among the largest global suppliers in the automobile industry."
Luc Fortin, Member for Sherbrooke, Minister of Families and Minister responsible for the Estrie region

"By integrating new technology into its aluminum parts production line, Verbom has built a reputation for excellence in sheet metal processing. We are therefore proud to help this manufacturer today in carrying out this major project, which will help increase its productivity, while showcasing aluminum and driving the development of the electric vehicle sector in Quebec and around the world." 
Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy

"In adopting the Innovation and Skills Plan, the Government of Canada implemented an ambitious approach to support innovative Canadian businesses that find new ways of creating value and expanding into new markets. This is a firm commitment to sustainable job creation and community prosperity." 
The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for CED

Highlights

• Founded in 1978, Verbom is a supplier of sheet metal tooling and component services for the automobile industry. The company specializes in aluminum thermoforming.
• The ESSOR program (website in French only) supports investment projects in Quebec, with a view to enhancing competitiveness and productivity, creating jobs and ensuring sustainable development.
• The Government of Quebec has set aside $825 million for businesses from Investissement Québec's own funds and the Fonds du développement économique to support growth in the innovative manufacturing sector (website in French only) across Quebec.
• The Stratégie québécoise de développement de l'aluminium 2015‑2025 (website in French only) focuses on three priorities: establishing an environment favourable to aluminum processing, strengthening the entire Quebec industry and ensuring the competitiveness of industry firms. Quebec is the first state to implement a comprehensive strategy for the growth and outreach of all points along the aluminum value chain.
• Verbom's investment project is part of the Plan d'action en électrification des transports 2015-2020 (website in French only) and contributes to actions to address climate change. By building on the electrification of transportation, Quebec, which has large quantities of clean energy at a competitive cost, plans to become a leader in the use of electrically powered means of transportation and a pioneer in sustainable mobility fostering the transition to a low-carbon economy.
• CED is one of the six regional development agencies under the responsibility of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development.

Related links

• To receive real-time news releases from the ministère de l'Économie, de la Science et de l'Innovation, subscribe to the appropriate RSS news feed at www.economie.gouv.qc.ca/rss (website in French only).
• For more information on CED's key directions until 2021, consult Strategic Plan 2021 or visit www.dec-ced.gc.ca.
• Ministère de l'Économie, de la Science et de l'Innovation on social networks: Twitter, Facebook, LinkedIn and YouTube
• Follow CED on Twitter, LinkedIn and YouTube

SOURCE Canada Economic Development for Quebec Regions

Sources, Karl Filion, Press Secretary, Office of the Minister of Families and Minister responsible for the Estrie region, Tel.: [phone]; Marie-Catherine Leduc, Press Secretary, Office of the Minister for Small and Medium Enterprises, Regulatory Streamlining and Regional Economic Development, Tel.: 418-691‑5650; Kim Désert, Deputy Press Secretary, Office of the Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy, Tel.: [phone]; Karl W. Sasseville, Press Secretary, Office of the Minister of Innovation, Science and Economic Development and Minister responsible for CED, Tel.: [phone]; Information, Jean‑Pierre D'Auteuil, Media Relations Officer, Communications Directorate, Ministère de l'Économie, de la Science et de l'Innovation, Tel.: 418-691‑5698, ext. 4868, Cell: 418-559-0710; Media Relations, CED, Tel.: [phone], Email: [email protected]