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The specter of steep U.S. tariffs on Canadian-made items has shut down one London manufacturing plant earlier than it opened.
Printed Jan 23, 2025 • Final up to date 1 hour in the past • 3 minute learn
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Harry Yang (LinkedIn photograph)
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The specter of steep U.S. tariffs on Canadian-made items has shut down one London manufacturing plant earlier than it opened.
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China-based Maple Armor Group introduced in August it purchased 5.6 hectares (14 acres) of land in London to construct a plant to make residential, business and industrial alarm techniques.
The corporate has a plant in Brossard, Que., and deliberate to increase to Ontario to faucet into the U.S. market, chief operations advisor Harry Yang mentioned. However Maple Armor Group has withdrawn from the London land deal and can as a substitute increase its Quebec plant and maintain off on U.S. growth.
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“We pulled out,” Yang mentioned. “There’s too much uncertainty. If we were to build a bigger plant here, we would need to sell into the U.S. It’s too chaotic right now. It’s better for us to take a safe approach.”
The corporate is the second in latest days to announce it is not going to open a deliberate manufacturing plant in London. Anvo Pharma has shut down building of its plant on Bonder Highway, and put the lot and partially accomplished constructing in the marketplace. The corporate has pledged to repay a $3.2-million mortgage it obtained from FedDev Ontario to construct the plant right here.
The unfinished Anvo Pharma facility on Bonder Highway in London is proven empty and on the market on Thursday, Jan. 16, 2025. (Mike Hensen/The )
Maple Armor Group purchased land in Innovation Park on Boyd Court docket, north of Freeway 401 off Veterans Memorial Parkway, at a value of $2.9 million, the corporate introduced in August.
Maple Armor Group backed out of the deal in November.
“It was a preliminary purchasing agreement and the city was gracious enough to allow us (time) to decide whether to go ahead,” Yang mentioned. “When we entered into the agreement the intention was clear, to allow us to review and make a decision (later).”
In November, then U.S. president-elect Donald Trump threatened a 25 per cent tariff on Canadian items bought into the U.S., a transfer that may make the value of products made right here extra pricey for U.S. customers. After his inauguration on Monday, Trump mentioned he plans on implementing the tariffs on Canadian items Feb. 1.
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“We have the land and facility in Brossard, and we think it would be better with the uncertainty of politics, so there was a change of plans,” Yang mentioned.
Maple Armor Group opened in Quebec in 2011. The corporate is a subsidiary of the Chinese language model Jade Chicken Hearth Co. and its Chinese language model identify is Mei An.
Jason Bates, supervisor of the London Area Manufacturing Council, mentioned concern is excessive amongst many Southwestern Ontario producers in regards to the impression of potential U.S. tariffs. He just lately held a web-based assembly for members to debate the potential impression with officers from World Affairs Canada and greater than 700 companies registered for the decision.
“There’s a high level of concern. The unknown is scary in business and there are no answers out there right now,” Bates mentioned. “It will be a barrier to the U.S. market. It could be huge.”
U.S. importers pays the tariff that might be handed on to customers, pushing up the price of an merchandise a minimum of 25 per cent.
“Maple Armor is a lost opportunity,” mentioned Kapil Lakhotia, chief govt of the London Financial Growth Corp.
“The U.S. is our biggest trading partner and given the number of companies in Canada that supply food, auto parts, building products and medical devices to name a few, there will be a negative impact. It’s the front and centre issue for manufacturers right now.”
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Maple Armor Group deliberate to construct a 5,575-square-metre (60,000-square-foot) plant that may have employed about 50 individuals.
Anvo Pharma broke floor on its London plant in September 2020. Work stopped on the plant within the Superior Manufacturing Park at Veterans Memorial Parkway and Bradley Avenue in the summertime of 2024.
The 5,575-square-metre (60,000-square-foot) constructing on a two-hectare lot was listed on the market in December for $10.5 million.
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