December 23, 2022
Manitoba Government Provides $50-Million Loan to NFI Group to Mitigate Supply-Chain Challenges
– – –Short-Term Repayable Loan Ensures NFI Group Will Continue to Generate Jobs and Economic Activity in Manitoba: Premier
Watch news conference
The Manitoba government is providing a loan of $50 million to NFI Group to manage the short-term impacts of supply chain and inflationary pressures, Premier Heather Stefanson and Economic Development, Investment and Trade Minister Cliff Cullen announced this morning.
“NFI Group is the largest bus manufacturer in North America with the most technologically advanced zero-emission buses in the industry,” said Stefanson. “Like many other global vehicle manufacturers, NFI Group’s recent challenges reflect the impacts that unprecedented supply-chain disruptions have had on vehicle production. This repayable loan is a strategic investment to help capitalize on economic growth opportunities in manufacturing and to help maintain jobs as NFI Group recovers from global supply-chain disruption and benefits from record investments in public transit.”
Support from the Manitoba government will come in the form of a loan at commercial rates with the expectation that it will be repaid within 12 months and the possibility of extension for a further 24 months, the premier said, adding that NFI Group has also engaged with other partners for support and received a non-binding commitment for a US$150-million commercial loan and guarantee facility through Export Development Canada. Final approvals and documentation for this loan are expected to be completed in January 2023, the premier noted.
“Cities around the world from Los Angeles to London rely on NFI Group’s cutting-edge vehicles to safely and efficiently move millions of passengers every day,” said Cullen. “NFI Group is also a key employer and industry leader in Manitoba with a history of success and growth that illustrates Manitoba’s burgeoning manufacturing industry. Our government is pleased to support NFI Group with this loan, which not only helps grow our economy, but also keeps jobs here in our province.”
NFI Group is a global manufacturer of buses and motor coaches that also offers aftermarket parts and services for its vehicles. Its head office, three manufacturing facilities and a parts distribution facility are located in Winnipeg and employ approximately 2,500 people in Manitoba from a total of 7,500 employees across nine countries.
NFI Group is facing a number of short-term component supply challenges that have impacted its financial performance and disrupted product delivery schedules, the minister noted.
“On behalf of the NFI Group, I would like to thank the Manitoba government for this tangible and critical display of support,” said Paul Soubry, president and CEO, NFI Group. “The loan from the province is critically important in strengthening our financial position, increasing our liquidity, maintaining jobs in Manitoba and allowing us to focus on execution and realization of record demand for our products and services.”
NFI Group is a global leader in zero-emission mobility with a wide range of zero-emission battery and fuel cell buses and coaches designed for locations around the world and a key contributor to innovative technologies and opportunities that support the transition to greener transportation options.
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