August 02, 2026 to August 08, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning most types of manufacturing activities (except agricultural, automotive, aerospace, food, and pharmaceutical), e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Once a week, 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. Also consider subscribing to our Manufacturing - Washington edition covering critical GR news south of the border.

📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

Federal Government News

Canada Invests $10M in Hanon Systems for National EV Manufacturing Expansion

On August 6, 2026, the Honourable Mélanie Joly, Minister of Industry, announced a $10 million federal investment through the Strategic Response Fund in Hanon Systems for a new vapour-injected electric compressor manufacturing facility and product development centre in Vaughan, Ontario. The project, which totals $198.75 million, is expected to yield up to 1.5 million e-compressors annually by 2034 and create approximately 300 jobs. The new plant will expand Hanon Systems’ North American manufacturing presence, catering to electric and hybrid vehicle markets. Federal involvement forms part of the automotive strategy aimed at securing Canada's role in the global EV supply chain and industry. The initiative is positioned to generate economic benefits for both the region and country and signals a continued governmental commitment to the domestic automotive sector's transition toward vehicle electrification.

Sources: www.canada.ca

Critical Minerals Infrastructure Advanced through Federal Funding in Saguenay–Lac-Saint-Jean

On August 5, 2026, Parliamentary Secretary Claude Guay announced that Natural Resources Canada will provide nearly $5 million under the First and Last Mile Fund in the Saguenay–Lac-Saint-Jean region to support infrastructure related to Quebec's Bégin–Lamarche phosphate mine. First Phosphate is matching this contribution, leveraging close to an additional $5 million in private investment. Phosphate from the site is used in lithium iron phosphate (LFP) batteries for electric vehicles and energy storage. The federal funding supports pre-development work, including feasibility and environmental studies and community engagement, aiming to establish power and transportation links to regional and international markets. The infrastructure is anticipated to create some 500 jobs during construction, with an additional 300 jobs once mine production commences in 2029.

Sources: www.canada.ca

Canadian International Trade Tribunal Initiates Expiry Review of Grinding Media Imports from India

The Canadian International Trade Tribunal on August 4, 2026, initiated an expiry review (RR-2026-005) regarding its earlier finding related to certain grinding media from India. The review determines whether the expiration of anti-dumping or countervailing measures could likely lead to resumed dumping or subsidizing, which may damage the domestic industry. The Canada Border Services Agency will conclude its likelihood determination by December 31, 2026. Should a risk of resumed or continued subsidization be found, the Tribunal will decide by June 11, 2027, whether injury to Canadian industry is likely. Interested parties may participate by filing Form I—Notice of Participation.

Sources: www.canada.ca

StatsCan Data: Industrial Chemicals and Synthetic Resins Production, 2025

Statistics Canada reported that in 2025, ethylene production in Canada reached 5.7 million tonnes, a 5.6% increase from 2024. Anhydrous ammonia output stood at 4.8 million tonnes, marking a 1.0% year-over-year gain. Urea production, however, was 4.0 million tonnes, showing a 1.4% decrease. The updated figures indicate shifts in demand and supply dynamics for foundational chemical inputs within the manufacturing sector.

Sources: www.statcan.gc.ca

Indigenous-Led Clean Energy Project Receives Federal Support in Northwestern Ontario

On August 5, 2026, Minister Patty Hajdu announced a combined $1,129,183 investment from FedNor, including $669,383 in new funding, to support Bingwi Neyaashi Anishnaabek's installation of a district biomass heating system in northwestern Ontario. The project utilizes wood residue from local sawmills as a renewable fuel source and aims to provide consistent heat to community buildings, moving away from diesel-powered generators. Part of the funding was previously announced in December 2025. The investment supports planning and infrastructure development under the Northern Ontario Indigenous Clean Energy Initiative, intended to reinforce community capacity and decrease greenhouse gas emissions.

Sources: www.canada.ca

Federal Event Scheduled: Investments to Support B.C. Manufacturing and Trade Resilience

On August 6, 2026, Pacific Economic Development Canada and Minister Gregor Robertson announced an upcoming event to outline new federal investments aimed at assisting British Columbia businesses. The funding, set to be detailed at an August 10 event in Burnaby, covers initiatives to strengthen supply chains, boost productivity, and expand market access for regional manufacturers, including the steel and forest-product sectors. The event is designed for business and organizational leaders across the province and will focus on strategies to help local industries manage trade disruptions.

Sources: www.canada.ca

StatsCan: Canadian Sawmill Output Down in May 2026

Statistics Canada reported that lumber production in May 2026 reached 3,869.8 thousand cubic metres, a 3.1% decline from April and 6.8% below May 2025 levels. The lower output figures may influence supply and pricing structures in the Canadian wood product manufacturing industries.

Sources: www.statcan.gc.ca

StatsCan: Canada’s International Merchandise Trade Balance Narrows Slightly in June 2026

Canadian exports of merchandise rose by 0.4%, and imports by 0.2%, in June 2026, according to Statistics Canada. Consequently, the country’s trade surplus grew marginally from $3.7 billion in May to $3.9 billion in June. These shifts reflect ongoing movements in global trade affecting Canada’s manufacturing and exporting sectors.

Sources: www.statcan.gc.ca

Federal Funds Support Indigenous Leadership in B.C. Forest Sector via New Processing Facility Study

On August 4, 2026, Natural Resources Canada announced over $1.2 million in funding to Iskum Investments LP for feasibility studies related to a new potential wood processing plant in coastal British Columbia. The proposed facility, slated for majority Indigenous ownership and operation, could create over 700 jobs along the coast. The support stems from the Indigenous Forestry Initiative and covers commercial and technical due diligence, aimed at supporting Indigenous participation and advancing local wood manufacturing capacity.

Sources: www.canada.ca

Provincial Government News

Ontario Backs $132 Million Tempel Canada Manufacturing Facility in Burlington

Ontario announced it is supporting Tempel Canada’s $132 million investment in a new 250,000-square foot transformer core manufacturing plant in Burlington, set to sustain over 200 existing jobs and add nearly 100 roles.

Sources: news.ontario.ca

Ontario Proposes Changes to Accelerate Resource Permitting Processes

Ontario unveiled proposals on August 5, 2026, targeting modernization and reduced administrative processes for 13 natural resource permits to shorten approval times for mining and infrastructure projects.

Sources: news.ontario.ca

Overview of Ontario's Proposed Low-Risk Permit Changes Across Sectors

Ontario has published details about planned updates to permitting under the Fish and Wildlife Conservation Act, Crown Forest Sustainability Act, and Public Lands Act, seeking feedback on measures affecting fish, wildlife, forestry, and public land management processes.

Sources: news.ontario.ca

Ontario Fines Chemical Manufacturer for Water Resources Act Violation

Mancuso Chemical Limited was fined $9,000 for operating a stormwater management system without approval, after ministry officials observed unapproved discharges from the plant in August 2023.

Sources: news.ontario.ca

Nova Scotia Expands Agricultural Plastics Recycling Program for Farmers

Nova Scotia’s government is providing $76,000 to Cleanfarms, enabling province-wide expansion of its plastics recycling project and increasing collection points for agricultural plastic waste.

Sources: news.novascotia.ca

What We're Reading This Week

• Reuters: Global EV demand boosts lithium prices: Report on surging raw material costs affecting EV battery supply chains worldwide.
• Financial Post: Canada’s resource towns turn to advanced manufacturing: Analysis on how smaller communities leverage new investments in manufacturing.
• Bloomberg: Tariff talks reshape steel sourcing in North America: Steel sector adjusts procurement strategies as North American trade environment shifts.
• The Globe and Mail: Ontario’s red tape review and business sentiment: Overview of business reaction to Ontario's latest permit modernization proposals.
• CBC News: Quebec critical minerals pipeline project raises local questions: Piece covering local views on Quebec's infrastructure push to enable new minerals mining.
• Toronto Star: Ontario factories adopt Industry 4.0: Profile of manufacturers integrating automation and real-time analytics.
• La Presse: Sawmill production and lumber exports: French-language coverage of recent declines in Canadian sawmill output and export impact.
• Canadian Manufacturing: Federal project funding supports Indigenous industry: Details on federal grants for Indigenous-led manufacturing and forestry ventures.
• BIV: BC business groups eye supply chain resiliency grants: Preview of response by B.C. manufacturing clusters to new federal investment announcements.
• The Logic: AI advances challenge Canada’s process industries: Review of adoption challenges and opportunities of artificial intelligence in Canadian process manufacturing.

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