Common menu bar links
New Kongsberg facility in London, Ontario
25 March 2010
Ottawa, Ontario
Kongsberg’s new investment in Canada is related to a new product within the Protector family of products. Kongsberg has identified a need to develop a product with a larger remotely-operated turret containing a 25-50 mm cannon. Kongsberg expects to do key aspects of product development in Canada, including research and development, design, and manufacturing. Building on the technology developed for the Protector family, this investment will involve the production of mechanical equipment as well as assembly, testing and delivery of complex systems, including electromechanical, optical and software-based parts.
Kongsberg has chosen London, Ontario, area as the location for its new facility to undertake this project. Phase 1 of the project includes a $30-50 million investment by Kongsberg, involving 25-30 employees. According to Kongsberg, up to 100 employees will be engaged in this venture when it is fully operational, and up to 500 new positions could be created through sub-supplier activity.
Kongsberg Gruppen AS is a Norway-based international technology corporation structured around two main business areas in Canada: Kongsberg Maritime and Kongsberg Defence and Aerospace. The company employs 5,200 individuals in 25 countries.
Kongsberg Maritime currently operates three facilities in Canada: Kongsberg Mesotech located in Port Coquitlam, British Columbia, which manufactures sonar equipment for the security, oil and gas, and fisheries industries; Kongsberg Maritime Simulation, based in St. John’s, Newfoundland, which produces ship simulators; and a sales, marketing and technical support office of Kongsberg Maritime in Dartmouth, Nova Scotia, which delivers and services a wide range of systems for merchant vessels and offshore oil and gas installations. Kongsberg also operates Gallium Visual Systems, a subsidiary of Kongsberg Defence and Aerospace, based in Ottawa. Gallium develops commercial off-the-shelf software components and tools for high-performance, mission-critical applications.
Doing Business in Canada
Canada is recognized around the world for its sound economic and financial management. In fact, according to the World Economic Forum, Canada has the strongest banking system in the world.
The 2009 International Institute of Management Development (IMD) World Competitiveness Yearbook states that Canada leads all G-7 countries in ease of doing business. Moreover, in its March 2010 country forecast report, the Economist Intelligence Unit ranks Canada number 1 among G-7 countries in its business environment ranking for the 2010-2014 period.
The Government of Canada is creating an investment destination for global business and investment through supportive economic policies that make Canadian companies more competitive and Canada more attractive to international investors. The Government is laying a strong foundation for long-term job creation and economic growth with investments in innovation, training and education.
Canada has not been immune to the economic downturn. In response, the Government introduced Canada’s Economic Action Plan to boost confidence and economic growth.
Budget 2009 permanently eliminated tariffs applied on a broad range of machinery and equipment, providing average annual savings of $88 million. Budget 2010 implemented a second phase of tariff relief by eliminating all remaining tariffs on manufacturing inputs and machinery and equipment, providing an additional $300 million in annual duty savings for Canadian business.
As a result of federal and provincial business tax changes, this year Canada will have the lowest overall tax rate on new business investment among G-7 countries and below the OECD average. Canada will also have the lowest statutory tax rate in the G-7 by 2012. Indeed, by 2012, Canada will have a statutory tax rate advantage over the U.S. of more than 12 percentage points. The competitiveness of our business tax system encourages new investment in Canada, including direct investment from abroad.
The Government has also introduced much-needed reforms to its competition and investment laws and policies. Amendments to the Investment Canada Act encourage more foreign investment, generating all the benefits that such investments bring while also making sure new foreign investments do not jeopardize Canada’s national security.
