Ontario Supporting $107 Million Investment in Mass Timber Manufacturing Sector

ST. THOMAS — The Ontario government is welcoming an investment of $107 million from Element5, a homegrown mass timber manufacturer, to expand the company’s operations in St. Thomas. This investment will create 150 new, good-paying jobs across the region and enable Element5 to double its production capacity, supporting Ontario’s domestic supply chain through the use of Ontario forestry products and meeting the rising demand for sustainable building materials and modular homes. This investment will advance the government’s plan to protect Ontario workers and attract investment in the forestry and advanced wood construction sectors.

“Ontario’s forestry and wood manufacturing sectors support tens of thousands of jobs across the province,” said Vic Fedeli, Minister of Economic Development, Job Creation, and Trade. “As our government delivers on our plan to protect Ontario, Element5’s expansion will create over a hundred new jobs and bolster the province’s wood manufacturing supply chain, increasing the forestry sector’s competitiveness and unlocking new opportunities for workers, builders and homeowners.”

At a time when U.S. tariffs are taking direct aim at Canada’s leading industries, Element5’s investment is a reflection of the competitiveness and resilience of the province’s economy and workers. As one of North America’s first fully automated timber plants that sources materials from Ontario, the new facility will be equipped with a glued-laminated and cross-laminated timber production line, allowing the company to boost the domestic supply of sustainable building materials and meet a rising demand for modular housing. In support of this investment, and as part of the government’s plan to build a more resilient forestry sector, Ontario is providing $8 million in funding through the Invest Ontario Fund.

“This expansion represents a bold step forward for Element5, our partners and the mass timber industry in Canada,” said Chris Latour, President of Element5. “We are proud to provide innovative, sustainable building solutions that help address Canada’s urgent need for affordable, climate-friendly housing and infrastructure. With our expanded operations, we are even better positioned to support communities across Ontario and North America.”

By leveraging the strength of the forestry sector and ensuring strategic supply chains are developed in Ontario, with Ontario workers, the government continues to secure the province’s place as the most competitive jurisdiction to invest and grow within the G7.

Quick Facts

• The Ontario government is protecting jobs and building communities by accelerating the manufacturing and use of modular and prefabricated wood-based materials, known as advanced wood construction.

• As part of Budget 2025, Ontario is committing $50 million over five years through Invest Ontario to grow the province’s industrial capacity in modular and innovative construction by investing in the expansion and upgrade of existing production-line machinery and adoption of new technologies that increase productivity and output.

• Ontario’s Advanced Wood Construction Action Plan will position the province as an advanced wood construction leader by leveraging the forest sector’s talent, technology and sustainable forest management expertise.

• Founded in 2015, Element5 specializes in the design, fabrication and assembly of contemporary timber structures ranging across an expansive portfolio of commercial, industrial, residential, and municipal projects. With its long tradition in timber manufacturing and rich resources, Elgin County has served as an strategic location for their ongoing growth and invited investments from industry leaders like Austria-based timber company the HASSLACHER group.

• To date, Ontario has committed over $13 million to enhance the province’s advanced wood construction capacity by investing in research, development projects and innovative forest sector manufacturing.

• Accounting for approximately 830,000 workers in Ontario, the manufacturing sector is important to the province’s prosperity, especially in regional communities.

• Since inception, Invest Ontario has helped companies announce over $7.6 billion in investments and over 9,700 jobs in Ontario.

Quotes

"Element5’s expansion in the St. Thomas facility will create high-quality jobs and drive economic growth in Ontario’s forestry sector. This investment will strengthen made-in-Ontario supply chains and create new opportunities for Ontario forestry workers well into the future."

- Mike Harris,

Minister of Natural Resources

"Element5’s expansion highlights the role that Ontario’s forest product sector will play in protecting our province from heightened trade uncertainty. This announcement illustrates how our Advanced Wood Construction Action Plan will support the creation of good-paying jobs here at home, build stronger communities, and strengthen local supply chains."

- Kevin Holland,

Associate Minister of Forestry and Forest Products

"I am proud that Element5 has chosen to continue its local success story and expand their operations here in St. Thomas. Today's investment further bolsters Ontario's role as a leader in advanced wood construction and will play a pivotal role in our mission to build homes faster."

- Rob Flack,

Member of Provincial Parliament for Elgin-Middlesex-London

"The opening of our new site in Canada marks a major milestone – for Element5 as well as for the entire HASSLACHER group. We are proud to have taken the step into North America and grateful for the support we have received here. With Element5, we have found the ideal partner to advance modern timber construction. Canada offers the perfect conditions: access to high-quality raw materials, a growing market, and a clear commitment to sustainability. We have come here with a long-term vision – to stay, and to help shape the future of building with wood. True to our motto: From wood to wonders."

- Christoph Kulterer,

CEO & Owner, the HASSLACHER group

"At Invest Ontario, we are expanding our scope to respond to a changing economic environment including support for affordable housing which is a priority for Ontario. This project advances that focus by supporting a homegrown mass timber supplier that is instrumental in meeting the growing demand for affordable, modular construction."

- Khawar Nasim,

CEO of Invest Ontario

Additional Resources

Invest Ontario

2025 Ontario Budget: A Plan to Protect Ontario

MEDIA CONTACT                                                                                              

Stephen Lecce, MPP for King-Vaughan

Constituency Office

Tel.: 647-560-9700        

Email: Stephen.Lecce@pc.ola.org