A Wallaceburg manufacturing company will soon be creating some of the largest tools in the world.
AarKel Tool and Die Inc. is receiving $8.5 million from the federal government to help it focus on giga tooling. These are tools, mainly used by the automotive sector, that weigh 100 tonnes or more.
"There aren't a lot of manufacturers in our business that can build a tool this size. So, we'll be one of less than a handful, maybe one of three tool shops in North America," said Larry Delaey, president and CEO of AarKel Tool and Die.
The funding is coming from the Regional Tariff Response Initiative (RTRI). It was created by the federal government to help businesses affected by U.S. tariffs.
Delaey wouldn't say whether his company has been struggling due to the tariffs, only that they've kept the same workforce the entire time.
"We've kept our people busy, and we've been able to manage through the turmoil," he added.
Currently, AarKel Tool and Die creates tools around the 50-tonne range. Delaey said it's becoming tougher to compete in this market.
"Over three-quarters of that tooling is being done in China now," he added.
One of the main goals of the RTRI is to have businesses open doors to new markets. Delaey explained that this is exactly what they're doing with the new focus on giga tooling.
The goal is for the company to start creating the new tools within 24 months.
Meanwhile, AarKel Tool and Die isn't the only Wallaceburg business receiving federal funding.
Five Star Tool and Die Ltd, Ritch-Meyer Machine & Tool Inc., and Select Finishing are also receiving financial support through the RTRI.
The funding for each company was announced in London on Friday.
