Temiskaming Shores foundry receives major provincial funding for expansion

Ontario is providing $4 million in funding for northern businesses, with over $3 million for Wabi Iron & Steel's foundry expansion.

A Temiskaming Shores mining equipment manufacturer that has operated for nearly 120 years is receiving a significant financial boost from the Ontario government to modernize its operations and dramatically increase production capacity. The funding announcement, made Wednesday afternoon by Ontario Minister of Northern Economic Development and Growth George Pirie, directs $3.25 million toward Wabi Iron and Steel Corporation’s ambitious expansion plans.

The investment forms part of a broader $4 million funding package for three northern businesses through the Northern Ontario Heritage Fund Corporation. Wabi’s allocation will support critical upgrades to the company’s foundry division, which remains the only operation of its kind in northern Ontario.

“We are investing in changing our molding systems, our molding line operations and upgrading our melting capabilities,” said Darryl Gutscher, Wabi’s president.

The foundry produces specialized castings for the mining industry, creating what Gutscher described as ‘wear parts’ essential for both milling operations and underground mining activities. Workers at the facility pour molten metal into molds to create these components, serving a vital role in the mining supply chain.

Quadruple production capacity

The provincial funding will enable Wabi to purchase and upgrade existing equipment while renovating its foundry facilities, leading to a substantial increase in production capacity.

“Essentially, this will allow us to go from our current tonnage capability of 700 tonnes to 5,400 production tonnes by the end of this project,” Gutscher said.

The expansion represents a significant leap forward for the company, which has maintained operations in the region for nearly 120 years. Beyond the immediate equipment upgrades, Wabi is planning for long-term growth through a comprehensive five-year expansion strategy that includes substantial job creation.

“We anticipate approximately 40 more employees added,” Gutscher said.

Regional development strategy

Pirie emphasized that the investment aligns with broader government objectives to strengthen northern Ontario’s economic foundation and reduce dependence on external markets.

“It’s part of that strategy about pivoting away from the dependency of the U.S. markets and building our own made-in-Ontario economy,” he said.

Pirie also highlighted the strategic importance of prioritizing investments through the Northern Ontario Heritage Fund Corporation to protect industries and jobs across the region. He pointed to the unique position Wabi occupies in the manufacturing landscape, noting how the company has adapted to changing industrial demands over decades.

“By staying in the game, they’re basically in a very unique position,” Pirie said.

“Over the years, companies shifted to steel. Products became more advanced. Then plastics were introduced. Now, as the economy grows and expands, they realize that the foundries are absolutely essential.”

The minister also noted the complementary nature of Wabi’s foundry operations with emerging regional industries, specifically mentioning the Electra Battery Materials cobalt refinery plant under development south of Temiskaming Shores. This facility, which will manufacture components for electric vehicle batteries, positions the region as a key player in critical mineral extraction and processing.

Century-long vision

Wabi’s products currently reach markets far beyond northern Ontario, with the company shipping castings to mines across Canada, South American countries including Peru, and various international destinations. The company recently secured a supply agreement with a mining operation in Ireland, demonstrating its global competitiveness.

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Alongside Wabi’s funding, the provincial announcement included $400,000 for Claymeer Farms Ltd. to complete building renovations and increase drying and storage capacity for cash crops, both from its own operations and other local farms. An additional $400,000 was allocated to Mid North Recycling Inc. for construction of a new facility, equipment purchases, employee training and marketing initiatives.

Looking forward, Gutscher expressed confidence in Wabi’s trajectory as it seeks to establish itself as the premier foundry operation. With the provincial investment supporting modernization efforts, the company says it is positioning itself for continued success.

“We are looking ahead to another century of production,” Gutscher said.