Jennmar Canada seeks stable ground from tariffs by expanding its Sudbury plant

A company that manufactures ground control products for the mining industry is investing in its Sudbury plant, in part to create a stable future as the United States imposes tariffs on steel.

Jennmar Canada is putting $7 million into expanding the plant on Lasalle Boulevard, increasing the floor space, installing equipment from a sister plant in Pennsylvania and purchasing new equipment to enhance production.

Its products rely heavily on steel reinforcements such as bolts, beams and trusses.

Managing director, David Hurd, projects up to 15 jobs will be created in the city.

He said the expansion had been planned for years, but was stalled by the COVID-19 pandemic.

However, he said the tariff situation is spurring the company to make its Canadian operations more autonomous now. 

 "Obviously with what's happening with the tariff situation, and the uncertainties that that brings to major manufacturing companies in Canada, we feel that it's time for us to make sure that we are more self-sufficient in our Canadian operations versus depending somewhat on our US sister company," he said.

Hurd says their consumption of steel for their products in Sudbury and their plant in Rouyn-Noranda, Que., is contributing to their decisions.

He said they have purchased half of their steel in Canada but that will increase to more than 85 per cent.

"If you look at moving steel across the border, for instance, where you're facing 25 per cent tariffs from US steel coming into Canada. and vice versa going the other way, of course, then that's a cost that you can't always expect the end users to cover," he said.

"So we're taking a proactive approach at looking at how we can secure our position in the marketplace and be better positioned, quite frankly, to serve the customer in the most cost-effective manner without putting the quality, or any of our supply chains, at risk here in Canada," he said.

While Hurd said the Trump administration may well be correct that tariffs will create more manufacturing jobs in the United States, he said it's Jennmar's corporate philosophy to be as close to its customer base as possible which means investing in its Sudbury operations, in the heart of the mining sector.

"It's good news for Canada for sure," said Hurd. "And it's good news for Jennmar Canada because we're in control of our own destiny without any governmental fallouts having any impact on our business."