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Honda, govts unveil C$492 million in Canada plant upgrades

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Honda Motor Co Ltd will spend C$492 million (S$534.3 million) on upgrades to its Canadian manufacturing plant, including C$84 million in government commitments.

[OTTAWA] Honda Motor Co Ltd will spend C$492 million (S$534.3 million) on upgrades to its Canadian manufacturing plant, including C$84 million in government commitments.

The developments announced Monday also includes a federal pledge to loosen the rules of its Automotive Innovation Fund to allow "contributions without the expectation of repayment," according to a statement from the office of Innovation Minister Navdeep Bains.

The three-year project, with roughly C$408 million in direct Honda commitments, will focus on upgrading assembly lines for Civic and CR-V models, as well as a new paint shop with lower greenhouse gas emissions.

"As a result of these upgrades, Honda of Canada Manufacturing will continue to provide thousands of well-paying, high-quality jobs in Alliston and throughout Canada," Honda Canada Chief Executive Officer Jerry Chenkin said in a statement released by the federal government. Alliston, Ontario is about 90km north of Toronto.

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Honda accounts for about 17 per cent of vehicle manufacturing in Ontario, said Brad Duguid, Ontario'sĀ economic development minister. His province and the federal government are each pledging C$41.8 million. The company employs more than 4,000 full-time and contract workers in Canada.

To date, Canada's Automotive Innovation Fund has allocated C$426 million, including commitments in 2015 to Toyota Motor Corp's Canadian unit and Linamar Corp.

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