Hamilton in running for Siemens plant
August 11, 2010
Steve Arnold
The Hamilton Spectator
BURLINGTON
http://www.thespec.com/News/Local/article/823953
Siemens Canada has won a massive new order for wind turbines and plans to build a new factory to manufacture blades for them.
Two Hamilton locations are in the running for that new plant and the 300 jobs it's expected to create.
In a news release yesterday, the company said the new plant, the first blade manufacturing site in Ontario, could mean up to 300 direct jobs and another 600 construction positions.
Although the company release didn't say where the new plant will be located, the chance of drawing that many good paying jobs has sent ripples of excitement through Hamilton and Burlington.
"Those jobs should be in Hamilton and we're going to be involved with all three levels of government to make sure that happens," said Randy Smith, president of the Canadian Auto Workers Local 504.
Smith represents most of the 550 staff Siemens is throwing out of work early next year when it closes its Hamilton gas turbine plant on Milton Avenue. Since that closure was announced in March, he -- with local politicians and others -- has been pressuring the company to find a new product for the plant.
Yesterday's announcement took him by surprise. "The company didn't mention a word about this to us. We haven't been involved in those talks or been considered for those jobs."
Siemens is closing the Hamilton plant in order to move its production to North Carolina, where it was promised heavy incentives.
By directing new work to Hamilton, Smith argues the company will gain both a chance to recover from that public relations black eye and access to a highly skilled work force it already knows. "Our people are very skilled and could do any kind of work the company brings along. We've always satisfied them, meeting all their production, quality and profit targets."
In Burlington, where Siemens Canada has its headquarters and a small plant, anticipation is building.
"This has been kicking around on my professional radar for some time and we've been promoting Burlington as a great location," enthused Ian Cameron, business development manager for the Burlington Economic Development Corporation.
"Today's announcement is a bit of new news, but we'd obviously be very happy to see it locate here," he added.
Under the order, Siemens will supply 600 megawatts of wind turbines for the Ontario market. The deal resulted from an agreement between Siemens, Samsung C&T and Pattern Energy.
The agreement, under the provincial government's Feed-in Tariff program, will provide Ontario consumers enough sustainable electricity each year to power more than 240,000 homes. It's part of a package in which Samsung has agreed to develop 2,000 megawatts of wind power over the next six years.
Bill Smith, senior vice-president of the energy sector for Siemens Canada, said a decision about the new plant's location should be made by the end of September. The company is looking at 16 potential locations along the shores of lakes Ontario and Erie between Kingston and Windsor. Two Hamilton locations are in the running.
Among the deciding factors will be a location with good road and rail access -- access to a port would also be nice. A large space is required because the turbine blades can be 55 metres long.
Smith said Siemens' existing Hamilton plant has been studied, along with a second unnamed location here. The company has no preference for an established industrial building versus a "greenfield" site.
Employees of the Hamilton plant will be given a chance to apply for positions at the new factory once a location has been chosen. Applications will be taken at a job fair to be held by the company. A similar event for outside applicants will also be held.
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