One of Winnipeg’s largest manufacturing companies is receiving a multi-million-dollar loan from the provincial government as it tries to keep up output amid supply chain challenges.
The Progressive Conservative government announced a $50-million loan for NFI Group, which owns the bus manufacturer New Flyer, Friday.
“Like many other global vehicle manufacturers, NFI Group’s recent challenges reflect the impacts that unprecedented supply-chain disruptions have had on vehicle production,” Manitoba Premier Heather Stefanson said in a release.
“This repayable loan is a strategic investment to help capitalize on economic growth opportunities in manufacturing and to help maintain jobs as NFI Group recovers from global supply-chain disruption and benefits from record investments in public transit.”
The loan will come at commercial rates and with the expectation that it will be repaid within 12 months, with the possibility of a further 24-month extension if needed.
The Winnipeg-based manufacturer of electric buses and motor coaches has said it is facing a number of short-term component supply challenges that have impacted its financial performance and disrupted product delivery schedules.
The company is working with other partners and recently received a non-binding commitment for a US$150-million commercial loan and guarantee facility through Export Development Canada.
Final approvals and documentation for that loan are expected to be completed in January 2023, Stefanson said.
Paul Soubry, president and CEO of NFI Group, thanked the province for the “tangible and critical display of support.”
“The loan from the province is critically important in strengthening our financial position, increasing our liquidity, maintaining jobs in Manitoba and allowing us to focus on execution and realization of record demand for our products and services,” he said in the province’s release.
NFI Group has its head office as well as three manufacturing facilities and a parts distribution centre in Winnipeg.
Economic Development, Investment and Trade minister Cliff Cullen said the loan will help the group stay on top of growth opportunities and maintain its 2,500 jobs in the province.
“Cities around the world from Los Angeles to London rely on NFI Group’s cutting-edge vehicles to safely and efficiently move millions of passengers every day,” said Cullen.
“NFI Group is also a key employer and industry leader in Manitoba with a history of success and growth that illustrates Manitoba’s burgeoning manufacturing industry.”
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