QSA's Week in Manufacturing (#34, 2025)

Canada invests in critical minerals and advanced manufacturing; US finalizes steel trade findings, announces new CMC pilot; tariff relief programs open; summit on Canadian steel and rail; new StatsCan data on manufacturing output.

QSA's Week in Manufacturing (#34, 2025)

Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning manufacturing, e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Manufacturing? Don’t miss this week’s updates in Mining and Oil & Gas.

Dates: 2025-08-24 to 2025-08-30

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 📚 What We're Reading This Week


Canadian Federal GR News

Over $21 Million Invested in Manitoba Manufacturing Innovation

On August 28, Prairies Economic Development Canada announced more than $21 million in federal funding to support nine Manitoba-based manufacturing projects aimed at expanding productivity, automation, and market reach. Firms receiving support include Decor Cabinets Ltd. ($3.2M), ICON Technologies Limited ($5M for RV plastic components), Northquip Inc. ($3.3M for zero-turn mowers), PhiBer Manufacturing Inc. ($4.1M for ag equipment), Prairie Fava Ltd. ($1.5M), Schnell Industries Inc. ($423k for electric transloader development), Security Glass Ltd. ($2.7M for flat glass manufacturing), Manitoba Organic Alliance Inc. ($278k for a digital marketplace), and UKKÖ Robotics Inc. ($529k for automated ag equipment). The investment is delivered through the Regional Economic Growth through Innovation and Business Scale-up and Productivity programs, supporting supply chain development, technology adoption, and job creation in Manitoba's manufacturing sector. Projects span advanced agricultural machinery, digital trading platforms, and new approaches to energy-efficient equipment.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca
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Canada and Germany Sign Joint Declaration on Critical Minerals Cooperation

Natural Resources Canada (NRCan) and Germany’s Federal Ministry for Economic Affairs and Energy signed a Joint Declaration of Intent on August 26 in Berlin to coordinate critical mineral supply chains, with a focus on lithium, rare earths, copper, tungsten, gallium, germanium, and nickel. The agreement covers project financing, supply chain integration, and joint technology development aimed at advancing midstream mineral processing, refining, and recycling capacity. The declaration encourages blended public financing, commercial partnerships, and research collaboration between Canadian and German companies, with an emphasis on regulatory alignment and risk mitigation. Both sides will establish a bilateral Task Force for implementation, and future activities are subject to domestic funding and regulations. The initiative aims to expand midstream critical minerals capabilities relevant to advanced manufacturing, clean tech, and defense industries.

Sources: Announcements: www.canada.ca

Federal Investment Expands Quebec Graphite Operations

The Government of Canada announced on August 26 an investment of $6.2 million in Northern Graphite Corporation’s Lac-des-Îles mine in Quebec, North America’s only operational natural graphite mine. The funding aims to extend mine life by seven to ten years and maintain 55 jobs, supporting up to 20,000 tonnes annual graphite output. The federal contribution—delivered via Canada Economic Development for Quebec Regions and NRCan—targets strategic autonomy for battery and defense supply chains. The project, part of Canada’s $3.8 billion Critical Minerals Strategy, includes modernization of extraction operations and optimization of the value chain for advanced manufacturing applications in batteries, semiconductors, and communications.

Sources: Announcements: www.canada.ca

Canada Supports Abitibi-Témiscamingue Mining Sector

On August 25, CED announced over $2.4 million in funding to five businesses—Techni-Lab S.G.B., Arkys Web Software, ASDR Canada, Usinage Marcotte, and HydroTech Mining—in Quebec’s Abitibi-Témiscamingue region. Investments are directed towards equipment acquisition, innovation, and increased production in the mining sector under the Regional Economic Growth through Innovation program. The funding will help improve technological performance, expand market access, and enhance specialized services as Quebec strengthens its position in mining-related manufacturing.

Sources: Announcements: www.canada.ca

PacifiCan Provides $6.8 Million to Coquitlam Businesses for Waste Reduction Technologies

On August 25, Pacific Economic Development Canada announced $6.8 million in repayable funding for two Coquitlam firms: Moment Energy ($4.9M for repurposed EV battery storage systems) and Novo Textile Company ($1.8M for expanded textile recycling capacity). Moment Energy’s modular battery systems extend battery lifespans by 10-15 years and can be rapidly deployed for critical energy needs. Novo will blend recycled fibers with BC wood pulp for cost-competitive textiles, targeting landfill diversion of up to 15 million pounds of waste yearly. The support, through PacifiCan’s Business Scale-up and Productivity program, advances recycling technologies and supply chain resilience in textiles and energy storage.

Sources: Announcements: www.canada.ca

Regional Tariff Response Initiative Opens for Southern Ontario and Atlantic Canada

The federal government announced on August 26 and 29 that eligible businesses in southern Ontario and Atlantic Canada can now apply for support initiatives aimed at helping small and medium enterprises respond to trade shocks. The Regional Tariff Response Initiative is a three-year, $450-million national program, with $160 million allocated to southern Ontario and separate funding for Atlantic Canada. Key sectors targeted include steel and automotive. The program funds productivity improvements, market diversification, and supply chain resilience, with information sessions planned for stakeholders in Atlantic provinces.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Canada Announces Support for Innovation in Northern Ontario Manufacturing

On August 26, FedNor announced $1.05 million in investment for NORCAT to deliver two SME support initiatives in Northern Ontario: $700,000 for the Regional Artificial Intelligence Initiative (advisory services and funding to help SMEs adopt, integrate, and commercialize AI tools/products) and $350,000 for the Innovation Acceleration Program (renewed 3-year business assistance for growth activities). Supported activities include server/cloud infrastructure upgrades, training, R&D, equipment acquisition, and market expansion. Over 35 SMEs are expected to benefit, enhancing efficiency and competitiveness in the region’s industrial sector.

Sources: Announcements: www.canada.ca

Federal Announcement for Businesses Facing Trade Disruptions in Southern Ontario

On August 25, FedDev Ontario announced a forthcoming support package for key sectors in southern Ontario impacted by trade disruptions. The announcement—delivered at Hooper Welding Enterprises Ltd., a manufacturer in Hamilton—was scheduled for August 26, with Minister Evan Solomon and MP John-Paul Danko in attendance. Details regarding the scale and sectoral breakdown of the funding are forthcoming, with a focus on business resiliency and sector competitiveness.

Sources: Announcements: www.canada.ca

Transport Minister to Host Made in Canada: Ferries and Rail Summit

Transport Canada announced on August 28 that Minister Chrystia Freeland will host the Made in Canada: Ferries and Rail Summit in Hamilton, Ontario, on September 2. The event aims to convene industry leaders, suppliers, and governments to discuss domestic production priorities in steel, aluminum, rail, and ferry sectors. Topics will include future infrastructure project needs, capacity constraints, and supply chain resilience, alongside opportunities for collaboration and government support. Media events are scheduled to follow the summit, with sign-in requirements for attendees.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Canada Invests in Climate Action at Metro Vancouver’s Waste-to-Energy District

On August 26, Environment and Climate Change Canada announced $2.5 million for Metro Vancouver's Waste-to-Energy District energy project in Burnaby, British Columbia. The investment targets the capture of steam from residual waste management processes, supplying clean heat and hot water to up to 50,000 homes. The facility is expected to reduce greenhouse gas emissions by up to 70,000 tonnes annually and contribute to lower energy costs, supporting regional infrastructure aligned with emission reduction goals.

Sources: Announcements: www.canada.ca

StatsCan: Manufacturing Sector Posts 1.8% Sales Increase in July, Cost Challenges Persist

Statistics Canada released several key data sets this period: July manufacturing sales rose 1.8%, led by transportation equipment and petroleum/coal product subsectors (Monthly Survey of Manufacturing: Advance Indicator, 2025-08-26). Real GDP edged down 0.1% in June, contributing to a 0.4% contraction in Q2, driven by declining exports and decreased business investment in machinery and equipment. The Machinery and Equipment Price Index for June became available, providing updated cost benchmarks. Cigarette production in July increased 5.5% month-over-month but remains 9.2% below July 2024 levels. Oilseed processors reported a 13.1% month-over-month increase in canola crushing but a 3.6% year-over-year decrease. The Canadian Survey on Business Conditions (Q3) indicates ongoing cost- and labour-related challenges for manufacturers, though optimism remains comparable to previous quarters. New data from the Annual Survey of Research and Development in Canadian Industry became available for 2023 (actual), 2024 (preliminary), and 2025 (intentions).

Sources: Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca

US Federal GR News

Antidumping and Countervailing Duty Final Determinations on Canadian Corrosion-Resistant Steel

On August 29, the U.S. Department of Commerce finalized its affirmative determinations on imports of certain corrosion-resistant steel products (CORE) from Canada. Dumping margins were set at 8.13% for Stelco Inc., 5.59% for ArcelorMittal Dofasco/ArcelorMittal Coteau-du-Lac, 52.08% for Nova Steel Inc. (adverse facts available), and 5.79% for all others. Countervailable subsidy rates determined for the same products include 1.14% for ArcelorMittal Dofasco, 1.50% for Stelco, 34.55% for Nova Steel Inc., and 1.16% for all others. These outcomes follow on-site data verification and scope reviews; Nova Steel received an adverse margin due to non-cooperation. The scope covers flat-rolled steel products coated with corrosion-resistant metals, with strict exclusions outlined. The U.S. International Trade Commission (ITC) will issue its injury determination before final duties are imposed.

Sources: U.S. Federal Announcements: www.federalregister.gov, U.S. Federal Announcements: www.federalregister.gov

White House 2025 Labor Day Proclamation Emphasizes Revitalization of U.S. Manufacturing

On August 28, President Donald J. Trump issued a Labor Day proclamation lauding efforts to restore American manufacturing, citing policies promoting domestic production, fair trade, and tariff revenue. The statement claims these measures have led to job creation and wage growth, and reaffirms a commitment to 'Buy American, Hire American' principles. The proclamation invites national observance through events recognizing the historical and ongoing importance of the American industrial workforce and claims direct action to rebuild manufacturing cities and support workers.

Sources: White House Announcements: www.whitehouse.gov

Commerce Department Updates Scope Ruling Applications in Antidumping and CVD Proceedings

On August 26, the Commerce Department announced receipt of several scope ruling applications in July for ongoing antidumping (AD) and countervailing duty (CVD) orders. Applications pertain to mobile access equipment and subassemblies from China, magnesium extrusions from China, lupini bean pasta from Italy, and stainless steel flanges from India. The filings detail product characteristics and origin; Commerce will determine acceptance within 30 days. Scope inquiries may be company-specific or sector-wide, impacting sector classifications under U.S. trade law. All updates and comment periods are handled via the Commerce ACCESS system.

Sources: U.S. Federal Announcements: www.federalregister.gov

FDA Announces Year Four of Chemistry, Manufacturing, and Controls Development and Readiness Pilot Program

On August 28, the U.S. Food and Drug Administration (FDA) announced the opening of year four for the Chemistry, Manufacturing, and Controls (CMC) Development and Readiness Pilot Program. The initiative is designed to expedite CMC processes for investigational new drug (IND) applications targeting serious diseases, offering increased Type B meetings and collaborative regulatory support for accelerated drugs and biologics. The application window begins October 1, 2025, and up to nine proposals may be selected for the fiscal year. FDA will hold a public workshop on September 10 to discuss strategy and lessons learned and intends to release a summary document on CMC best practices for expedited development.

Sources: U.S. Federal Announcements: www.federalregister.gov

Foreign-Trade Zone Production Activity Proposed for Maine Medical Dressings Manufacturer

The Commerce Department’s Foreign-Trade Zones (FTZ) Board received notification on August 15 regarding Mölnlycke Health Care’s proposal for new production activity at Brunswick, Portland, and Wiscasset, Maine. The facility plans to manufacture medical dressings and polyurethane foam using foreign-status materials, including adhesives, silicone, films, and wound pads. Duty rates for finished products are duty-free to 4.2%, while for imported components they range up to 5.8%, subject to international trade laws and duties under emergency and Section 301 regulations. Public comments are invited until October 8, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Ontario Fines Manufacturers for Environmental Compliance Violations

Ventra Group Co., operating a plastics facility in Peterborough, was fined $25,000 under the Environmental Protection Act for exceeding emission equipment limits in 2022. The company has six months to remit payment.

Sources: Provincial Announcement: news.ontario.ca

Ontario Construction and Waste Firms Penalized for EPA Offenses

2790731 Ontario Ltd. and its director were fined a combined $30,000 for unapproved waste disposal practices near Lakeshore, while Easy Demolish & Excavation Inc. received a $15,000 penalty for illegal disposal of demolition waste at a Windsor property.

Sources: Provincial Announcement: news.ontario.ca, Provincial Announcement: news.ontario.ca

Ontario Invests Over $23 Million in Skills Development for High-Demand Manufacturing and Construction Sectors

Premier Doug Ford announced over $23 million aimed at training more than 4,200 people in Mississauga and adjacent regions for manufacturing, construction, aerospace, and skilled trades. Funding recipients include both industry associations and targeted workforce training initiatives.

Sources: Provincial Announcement: news.ontario.ca, Provincial Announcement: news.ontario.ca

London, ON Workers Gain $2.6 Million Provincial Funding for Manufacturing Skills

Ontario is investing over $2.6 million through the Skills Development Fund in London and surrounding areas, with support for apprenticeship and safety training in manufacturing and construction.

Sources: Provincial Announcement: news.ontario.ca

Nova Scotia Approves New Gold Mine with Major Economic Impact

NexGold Mining Corp. received industrial approval for a new gold mine in Goldboro, Guysborough County, expected to start construction in 2026 and create 735 jobs, adding $2.1 billion to provincial GDP over 15 years.

Sources: Provincial Announcement: news.novascotia.ca

Atlantic Ministers Call for Federal Infrastructure Funding

At an August 28 meeting, Atlantic Canada's transportation ministers jointly urged Ottawa to establish new, long-term infrastructure funding for critical trade corridors (e.g., Chignecto Isthmus Resiliency Project), citing aging roads, bridges, and ferries as threats to regional trade.

Sources: Provincial Announcement: news.novascotia.ca

Alberta Penalizes Steel Fabrication Company for Safety Violations

Steele Tech Fabrication Inc. has been fined $90,000 following a workplace accident in Barrhead and placed on 18 months’ regulatory supervision. Funds will support local school shop safety equipment.

Sources: Provincial Announcement: www.alberta.ca

What We're Reading This Week

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