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Home»Sarnia»Funding Boost for Palmerston Manufacturing Expansion
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Sarnia

Funding Boost for Palmerston Manufacturing Expansion

October 5, 20263 Mins Read
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Funding Boost for Palmerston Manufacturing Expansion
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Last Friday, Perth-Wellington MPP Matthew Rae visited Palmerston to share the news of $3.9 million in provincial funding aimed at assisting a local manufacturer with its expansion plans.

The announcement took place at Hammond Manufacturing, which is investing over $26 million to grow their facility from 97,000 square feet to 182,000. Rae, who also holds the position of Associate Minister of Energy-Intensive Industries, mentioned that this initiative is part of the government’s effort to support Canadian businesses amid economic challenges with the United States.

“We’re not going to be pushed around, we’re going to stand up. We obviously want to work with our American friends and allies and we want to fortress North America. But we’re continuing to look for other partners in the world, whether it be European or Asian partners, and meeting the demands that they may have,” Rae stated.

He further explained that U. S. President Donald Trump’s trade war is creating a lot of uncertainty, emphasizing that the provincial government is dedicated to strengthening Canadian jobs. He noted that many companies across various sectors are facing significant hurdles due to Trump’s tariffs.

“They don’t know if the tariffs are going to be 50 per cent, 15 per cent, 20 per cent. So they can’t plan as businesses, whether it’s ag-food processing or agriculture in general, or manufacturing like where we are here, they’re not able to plan accordingly and do a business plan because the President is so unpredictable,” Rae said matter-of-factly.

The expansion at Hammond Manufacturing in Palmerston will help protect and sustain 128 jobs according to a joint press release from Rae’s office and Hammond Manufacturing.

“The support provided by the Government of Ontario has allowed Hammond Manufacturing to accelerate investments that strengthen our manufacturing capabilities and enhance our ability to serve customers across North America. These investments are helping us expand our capacity, improve productivity, remain competitive within our industry, and position the company for sustainable long-term growth,” shared Rob Hammond, CEO of Hammond Manufacturing Company Limited.

With all this economic uncertainty around us, Rae pointed out that Premier has made it clear Ontario needs to assist businesses throughout various sectors in standing strong.

“Ensuring that we’re really focusing on-shoring some of that production, investing as we are today in local manufacturing because we know there is a market for Canadian goods in the world. We’re going to continue advocating for Ontario and Canada across the world,” Rae concluded.

Hammond Manufacturing specializes in designing and producing electrical and electronic enclosures, server racks and cabinets, outlet strips, small enclosures, and low-voltage electronic transformers.

Rae mentioned that Ontario is putting over $250 million into its Regional Development Program aimed at helping manufacturers statewide grow while addressing specific regional needs. So far this program has supported more than 215 projects resulting in over $2.8 billion in new investments and creating over 5,900 jobs according to Rae’s press release.

Hammond Manufacturing in Palmerston. October 2, 2026 (Photo by Ryan Drury)


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