Invest WindsorEssex executives pitch the region to 66 companies
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A local delegation will travel to South Korea in the next two weeks to pitch investments to a number of companies that will ultimately form a supply chain servicing NextStar Energy’s Windsor battery plant and other LG facilities in the Great Lakes Basin. .
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LG Energy has arranged for 66 suppliers to meet with Invest WindsorEssex representatives at a meeting to be held in the capital Seoul on Dec. 15. In addition, regional officials will hold three more meetings with South Korean companies.
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Joe Goncalves, Vice President of Investment Attraction and Strategic Initiatives, Invest WindsorEssex, said:
About three quarters of the world’s battery manufacturers participate
“For a multi-billion dollar company like LG to set this up for us, we didn’t have a room big enough to handle the meeting, so we rented a room outside the facility. to pay a fee, and then send invitations throughout the company supply chain, which is unprecedented.
“The amazing thing is that they did it just for us. We are the only economic development agency to give presentations to these companies.”
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Goncalves said about 100 people from companies representing all aspects of battery production and recycling will attend the conference. These companies are also suppliers to other big players in the field, such as Samsung SDI.
“About three-quarters of the world’s battery makers will participate,” said Gonsalves, who will accompany Invest Windsor Essex CEO Stephen Mackenzie on the eight-day trip.
“LG for setting up this conference just for us sends a great message to the supply chain about what LG thinks about us and the community. They told us they had told companies they should consider being in the Windsor area.”
The CEO of one of the companies attending the LG Energy conference will also be in Windsor on December 21 to continue high-level discussions.
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“Nothing will happen until that is done, but the three companies that will be meeting separately have said Windsor is their preferred site,” Goncalves said.
NextStar Energy, a $5 billion electric vehicle battery manufacturing facility, hopes to begin limited production in the first quarter of 2024, with a full supply chain in place for full production in a year Goncalves expects to be very busy because of the need to do so.
“One company we work closely with wants to drive a shovel into the ground in the first quarter of 2023,” said Goncalves, showing how quickly the company can move. .
“We must be prepared to take advantage of this once-in-a-lifetime opportunity.”
For local governments, that means service industry sites are ready.
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Goncalves said the area will be OK with land in the short term, but its reserves could be quickly depleted by the level of new investment expected.
Invest WindsorEssex initially expected an additional $1 billion for support plants at the NextStar facility, but Goncalves said the area could exceed that number if land becomes available. .
“Most of our supplier factories are 100,000 to 300,000 square feet greenfield projects,” says Goncalves.
South Korean company Dongshin Motech has already committed to building a $60 million factory and creating 300 jobs at the Windsor Airport site to supply NextStar with battery trays.
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Dilkens visits LG Giga factory in Poland, seeks investment in Windsor-related supply chain
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The impact of the Windsor battery factory is immeasurable
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Battery factory joint venture will be called NextStar Energy Inc
Goncalves added that southwestern Ontario needs an extended regional strategy beyond Essex County boundaries. He believes the region’s various economic development agencies should take a coordinated approach to land a second battery factory and more supply chain companies.
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The provincial government confirmed this fall that Ontario is fighting with six different companies for a battery plant, and on Thursday Volkswagen announced it had reached an agreement with Canada to locate its first North American battery plant. .
“We don’t have everything that every business needs, but we want to leave as much as possible in Ontario and Canada,” says Goncalves.
“Maybe Chatham Kent and Sarnia have something that we don’t have that helps us because we want to build a whole ecosystem here[Ontario]. That’s why we’re trying to attract a second battery plant to Ontario.”
dwaddell@postmedia.com
Invest WindsorEssex executives pitch the region to 66 companies
Source link Invest WindsorEssex executives pitch the region to 66 companies