Plastics firm and Laval économique get a combined $1.5 million in subsidies from Ottawa
With 25 per cent tariffs on exports from Canada into the U.S. poised to kick in earlier this week, nobody at Plastitel Products in Laval’s industrial park seemed very concerned about the fallout.
While Vimy Liberal MP Annie Koutrakis was there primarily for a tour as well as to confirm a $900,000 subsidized federal loan to the company, Plastitel management’s motto might well have been What me worry?
Sleeping well, in spite
The plastic thermoforming sub-contractor is the second medium-size locally-based manufacturer to declare to The Laval News in recent weeks that the tariffs don’t have them losing much shuteye at night.
This is partly because Plastitel has a solidly established client base within Quebec. However, they also had the foresight to prepare for a challenge like this by providing themselves with a buffer through expansion into the U.S. years ago.
“There’s no doubt we need to evaluate the situation,” Sabrina Bolduc, general manager of the company, said in an interview regarding the tariffs, while adding that Plastitel benefits from the fact it now has two factories on American soil.
Shift to U.S. not ruled out
While acknowledging that Plastitel’s management has been contemplating the possibility of transferring some operations and assets to the U.S. to compensate for the tariffs impact, she said, “It’s not what we would prefer. But we might not have a choice because we have to focus on development of new clients.”
She noted that some of Plastitel’s customers in Canada were already being served by the company’s subsidiaries in the U.S., just as customers in the U.S. were receiving products from Plastitel’s Canadian factories.
“We’re always good to find our way around,” she said. “There’s no doubt this is not the best of circumstances. But it’s not the last word by any measure.”
Complex plastic forming
Plastitel specializes in contract thermoforming of strategic plastics for the medical, transportation and water treatment industries, with expertise in complex moulding processes such as twin-sheet moulding.
The business is using the federal loan to acquire and install state-of-the-art digital production equipment, enabling Plastitel to improve the automation of its capacity while enhancing competitiveness.
“This financial support enables us to accelerate our adoption of new automated technologies that will transform our production,” said Bolduc.
“Thanks to this equipment, we are improving our competitiveness by reducing manufacturing times, optimizing the quality of our products and decreasing the physical effort required from our employees.”
Boosting competitiveness
She said the new equipment will also enable Plastitel to reduce its energy consumption and environmental footprint, aligning with the company’s vision for sustainable high-performance growth.
CED also announced a $600,000 non-repayable grant to Laval économique, the City of Laval’s official regional economic development agency.
According to the federal ministry, the money will be helping Laval économique in its mission to offer advisory services and guidance to businesses in Laval in order to support their efforts to develop and diversify export markets.
Export and innovation
“This funding is that much more important in the current context, as it will be possible to help businesses that want to export, innovate and diversify their markets to pursue their growth,” CED says in its statement.
“Helping businesses in all regions across the country to soar is essential to build an innovative, strong, diverse economy,” said Koutrakis, who is Parliamentary Secretary the Liberal minister responsible for CED. “These investments will make it possible for Laval businesses to grow and be more competitive, as well as dynamize the region. I am delighted with this excellent news for the Laval economy.”
“I want to congratulate you on your efforts to automate your procedures,” said Christine Poirier, who in addition to being on the City of Laval’s executive-committee is the city councillor for Duvernay–Pont-Viau.
“I encourage you to continue on that direction and you can count on me and the support of Laval économique,” she added.
