(The Center Square) – Another Canadian company is expanding operations in Texas on the taxpayer’s dime – Cancoil USA, a subsidiary of Cancoil, based in Kinston, Ontario.
The company, which manufactures commercial refrigeration and industrial heat transfer products, has chosen Jacksonville, Texas, as its location to build a new manufacturing facility. It says the facility will create 120 new jobs and generate more than $28 million in capital investment.
It received a $648,000 Texas Enterprise Grant to seal the deal and was offered a $10,000 Veteran Created Job Bonus.
Gov. Greg Abbott praised the move saying the new facility “will improve supply chain efficiency for diverse industries” and “create 120 good-paying jobs in East Texas as part of the better job and bigger paycheck opportunities that we provide in Texas.”
The decision also reflects the fact that “Texas is the undisputed champion for attracting more job-creating businesses than any other state, with the best business climate in the nation and a highly skilled and growing workforce across our great state,” he said.
The new facility “will serve as a cornerstone for Cancoil USA’s operations, supporting manufacturing and delivering industry-leading heat transfer solutions to our customers in the United States,” Cancoil USA spokeswoman Monika Datta said in a statement. “Our decision to invest in Jacksonville reflects our confidence in the region’s skilled workforce and its strong business climate. This expansion is made possible through collaboration with local and state partners, including the Jacksonville Economic Development Corporation.”
Cancoil claims it “is one of the fastest growing manufacturers of commercial refrigeration products in North America” and acknowledges “the support of the Government of Canada through the Federal Economic Development Agency for Southern Ontario.”
Local officials also praised the use of taxpayer funds to seal the deal with a foreign owned company, citing the need for job creation and economic growth.
Jacksonville Mayor Randy Gorham said in a statement, “Cancoil’s decision to invest in Jacksonville represents more than just new jobs; it’s a reflection of the faith they’ve placed in our people and our future. This project shows what’s possible when a community works together to create a strong business climate and a welcoming hometown for families.”
JEDCO president Shane Pace said in a statement Cancoil’s expansion into Jacksonville “is a testament to the steady progress our community has made in creating the right environment for quality jobs and long-term investment.” It will also “strengthen our industrial base, bring new career opportunities to local residents, and add lasting value to our city.”
Awarded through the Texas Economic Development & Tourism office, the Texas Enterprise Fund grant “may be awarded to a business relocation or expansion project for which one Texas site is in competition with out-of-state locations to create new, good-paying jobs in the community and attract significant new capital investment to the state,” the office says.
Cancoil is the second Canadian-based company to announce its expanding operations in Texas in two months through the TEF.
Last month, Lefko USA Inc., a subsidiary of Canadian Centrik Capital, announced it chose New Braunfels as its first U.S.-based location to build a new manufacturing facility. It also received nearly $1 million in a taxpayer-funded TEF grant money and was offered a $19,000 Veteran Created Job Bonus to pick Texas as its first location, The Center Square reported.
