Canada’s Leland Investing in Illinois; Cites High Energy Costs in Ontario
MEDIA SPOTLIGHT – Leland Industries will open a fastener plant in Illinois rather than Canada because of rising energy costs in Ontario, the Canadian Press reported.
Leland employs 220 people at plants in Toronto and Ontario.
CEO Byron Nelson told the Canadian Press that Ontario’s high electricity costs make it hard for Leland to compete globally. Nelson anticipates Ontario’s cap-and-trade system, which starts in January, will drive up electricity and natural gas costs.
“We’ve prided ourselves that a Canadian manufacturer with the right people, processes, and technologies, can compete with anyone in the world,” the Canadian Press quoted Nelson. “But, we can no longer compete with the escalating energy costs we are seeing here in Ontario.”
Jocelyn Williams Bamford — vice president of Automatic Coating Limited and spokeswoman for the Coalition of Concerned Manufacturers in Ontario — said Leland is one of many smaller and medium-sized Ontario-based manufacturers considering expanding outside of Ontario.
“Ontario’s energy costs are rising so quickly many manufacturers are reassessing whether it makes sense to expand production in this province,” Bamford said. Manufacturers have become more competitive and have been able to reduce emissions at the same time because they have invested in new technologies, she added.
“Higher energy costs leave us less money for investment. And, if manufacturers can’t invest in Ontario, it’s not good for the economy or for jobs in this province,” Bamford said.
Nelson said Ontario has already lost a lot of manufacturers and will lose more because those in government “just do not understand.”
Ontario Economic Development & Growth Minister Brad Duguid acknowledged to the Canadian Press the government understands the problem “especially when it comes to controlling the costs related to upgrading our energy infrastructure.” Duguid added that electricity costs for small and medium sized businesses increased by 8% in 2017.
Founded in 1984 by Nelson with five employees and two cold headers making bolts for grain storage bins, Leland now produces fasteners for OEMs. In 2012, Leland acquired Canadian Threadall Ltd. to expand production capabilities. Leland has sale and warehouse facilities in Alberta, British Columbia, Quebec, Kansas, Minnesota and Oklahoma and is headquartered at 95 Commaner Blvd., Toronto, Ontario M15 359. Tel: 416 291-5306 Web: Leland.ca
Editor’s Note: Articles in MEDIA SPOTLIGHT are excerpts from publications or broadcasts which show the industry what the public is reading or hearing about fasteners and fastener companies. @2017 Fastener Industry News
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