/images/20070601-166.jpg" align=left vspace=4 border=2 > Tilbury received some good news recently when interest was expressed in the vacant former Fleetwood Metal plant. Global Vehicle Systems, a privately held Canadian company involved with precision manufacturing. They plan to expand facilities in Tilbury to manufacture composite hydro poles at the site. In order to make the venture feasible, the municipality borrowed nearly $1.5 million over a 5 year term to purchase the property. The plant will then be leased back to Global Vehicle Systems for the same amount as the loan payments, resulting in no financial impact to taxpayers.
This loan, which will increase municipal debt, is well within provincial guidelines for debt levels. The interest rate on the CIBC loan is 4.98%.
Global Vehicle Systems produces automation equipment and moulding to manufacturers of heavy trucks, automobiles and RVs.
In a related item, Global Composite Manufacturing of Tilbury will receive $2.1 million from the provincial government. The firm, a subsidiary of Global Vehicle Systems, will manufacture innovative power poles, and already has enough advance orders from utility companies for $20 million worth of product. It is expected that over 127 jobs will be created from this investment.
Chatham-Kent's Economic Development Services continues to explore creative methods of attracting business while constrained by the Municipal Act which bans many practices used by counterparts in the United States. Much of the recent announcement is the result of efforts by the previous mayor and council, leaving EDS to come up with new initiatives given the absence of business development skills displayed by the current mayor.
