SELECT ONTARIO PROFILES

VOLUME 8, ISSUE 2, SPRING 2005

Diversity the key to success for Xerox Research Centre of Canada

The Xerox Research Centre of Canada (XRCC) is marking its 31st anniversary this year and it has good reason to celebrate. With more than 960 patents to its credit, the XRCC is a research powerhouse.

Established in 1974, in Mississauga, XRCC was given the global mission for materials research. “It was a big responsibility,” says XRCC Director, Hadi Mahabadi, a polymer engineer recruited from the University of Waterloo, who has been with the Centre since 1981. “We recognized the importance of this responsibility and had to step up to the plate and deliver. We also had to establish a very good working relationship with our partners and other research centres in Xerox, to be able to jointly deliver our ideas to market.”

They did. The Centre’s 125 researchers are responsible for over 160 innovations per year. In terms of patents, they hold 10 per cent of the company’s worldwide total and delivered many of their new ideas to market.

Among the Centre’s recent discoveries is a new kind of plastic electronics that enable printing of tiny computer circuits, a break-through that could dramatically lower the cost of computer and television displays, while making them very light and flexible.

“The applications for this technology are wide reaching,” says Dr. Mahabadi. “It’s of great interest to a number of industries, including the automotive, aerospace, telecom, electronics and financial industries.”

So, what makes XRCC so successful?

“It all comes down to people,” says Dr. Mahabadi. “We’ve been able to attract the best scientists and engineers from Canada and around the world, and work very closely with our partners in other parts of Xerox,” he says, noting that Xerox is the only company among its competitors to have a research centre in Ontario.

“Our researchers are diverse–they come from Asia, Europe, all over–and that’s a huge competitive advantage when you’re making products for the worldwide market.”

XRCC is also located close to a number of top-notch research universities, including McMaster University, Queen’s University, University of Toronto and the University of Waterloo. “That was a deliberate decision on Xerox’s part,” says Dr. Mahabadi. “Xerox has always been a very progressive company and has recognized the benefits of collaborating with world-class university research centres.”

Honda Canada to lead the company’s expansion into the light truck market

First came the benchmark Odyssey minivan in 1998. It was followed by the Acura MDX sports utility vehicle in 2000. Now Honda Canada has been chosen to build the Ridgeline, the company’s new and innovative sports utility truck (SUT).

Honda was the first Japanese manufacturer to build cars in Ontario and the company’s Alliston, Ontario plant has been a winner from the moment the first Accord rolled off the assembly line in 1986. With the addition of a second facility in 1998, Honda Alliston became the lead facility for the company’s entry into the light truck business.

The 450 acre, award-winning facility employs 4,300 associates who already turn out 390,000, Acura 1.7 ELs, Acura MDXs, Civics, Odysseys and Pilots per year which are exported to over 10 countries, including Australia, Japan and the U.S.

The flexible manufacturing facility is being retooled and will begin production of the SUT in 2005, with between 40,000 and 60,000 vehicles expected to roll off the line in the first year. The vehicle is designed to set new standards for fuel efficiency, low emissions and safety performance in the light-duty truck segment.

Why has the Honda Motor Corporation turned to its Alliston facility for this important new mandate?

There are several good reasons, according to Jim Miller, Senior Vice President, Corporate Affairs, Honda Canada.

“We have a workforce that’s second to none in terms of skill, experience and dedication.”

“Ontario also offers highly competitive business costs and a transportation infrastructure that enables us to receive parts and components efficiently and at the same time get our vehicles to market. Ontario’s government as well, has been supportive, making it easy for vehicle assemblers like ourselves and parts companies to get up and running quickly.”

Husky Injection Molding Systems succeeds globally

“If you think it can’t be done, talk to Husky.” That’s the word in the US$20 billion (Cdn$25.3 billion) injection molding equipment sector, where Bolton, Ontario-based Husky Injection Molding Systems is the world leader.

The company designs and manufactures injection molding machines, molds for Polyethylene Terephthalate (PET) containers, hot runners and robots which are used by customers all over the world to manufacture a wide range of products in the packaging, automotive, communications and technical industries. Husky’s clients include Amcor, Lear, Magna, Motorola and Rubbermaid.

What sets Husky apart from its competition is its value-added services—factory planning, customer training and systems integration. Key to success is its Advanced Manufacturing Centre in Bolton. Built in 1993, the 180,000 sq. ft. centre houses 18 machine bays, a quality assurance lab and all the auxiliary equipment needed to run an injection molding system.

“When a client comes to us for help, we start by conducting a feasibility study,” explains Bruce Catoen, Vice President of Packaging at Husky. “Then we design the solution, build it and test it at our Advanced Manufacturing Centre before shipping it to the client’s facility for installation and training.”

Adds Catoen, “Our philosophy is to deliver what our customers need—what will keep them in the lead.”

Making sure its clients prosper has ensured Husky’s success. Last year, the company, which has customers in 100 countries around the world, enjoyed sales of more than US$879 million (Cdn$1.1 billion). Catoen says it’s no accident that Husky is located where it is. “Southern Ontario is a hub for the industry worldwide,” he says, pointing out that the province offers significant advantages as a business and investment location.

“Topping the list is a well-educated, talented, multicultural workforce. Ontario’s colleges and universities provide specialized programs for the industry, ensuring a steady supply of workers. The province also provides an excellent cost-base and access to the large U.S. market.”

IMI International Medical Innovations targets top disease killers

Health sciences company IMI International Medical Innovations is getting lots of good press these days. That’s because the Toronto, Ontario-based company, a leader in predictive medicine, has developed tests to detect early-stage cardiovascular disease, as well as the three biggest cancer killers: lung, colorectal and breast cancer. The tests have the potential to save millions of lives.

IMI’s predictive heart disease test, PREVU* Coronary Heart Disease Predictor, measures the amount of cholesterol in skin tissue. Studies show that skin cholesterol is a new, independent risk factor for coronary artery disease. The cancer tests work by detecting abnormal sugars in samples of mucus, or fluid, which are directly associated with the early formation of tumors. Initial results are very promising—in a pilot study, IMI’s LungAlert test detected 87 per cent of lung cancers. All of IMI’s tests are simple, painless, and low-cost. And that’s what’s creating such a buzz.

“The great thing about our technologies is that these really are cost-effective, easy-to-perform tests,” says Dr. Mike Evelegh, Principal Scientist with IMI. “They are non- or minimally invasive and can be done as part of an annual physical exam in the family doctor’s office or at a pharmacy.” He adds, “We’re even adapting our skin cholesterol technology for the home testing market.”

IMI, which has been in business since 1993, already has PREVU*, which was formerly known as Cholesterol 1,2,3™, cleared for sale in Canada, Europe and the U.S. The company recently inked a worldwide distribution deal with McNeil Consumer Healthcare (a Johnson & Johnson company) to market PREVU* in all fields of use.

“Ontario is the perfect location for us because of the quality of research available through the province’s universities and hospitals and the generous R&D tax credits,” says Dr. Evelegh.

SELECT ONTARIO FACTS

VOLUME 8, ISSUE 2, SPRING 2005

ProLogis to locate its first Canadian operation in the Greater Toronto Area

ProLogis, a Denver, CO-based global provider of distribution facilities and services, will soon begin construction of its first Canadian facility in the Greater Toronto Area, the third largest logistics market in North America. The first phase of development will include seven distribution facilities, totalling 1.75 million sq. ft. Construction of the first three facilities is slated to begin in summer 2005.

Vonage opens its first Canadian office in the Greater Toronto Area

Edison, N.J.-based Vonage Holdings Corp., a leading provider of broadband telephony in North America, has opened its Canadian headquarters in the Greater Toronto Area. “We see tremendous opportunity in Canada,” says Jeffrey Citron, Chairman and CEO of Vonage Holdings Corp. “Canada has one of the highest penetration rates of broadband Internet access in the world and is recognized as a country of early adopters eager to embrace change.”

NetSuite expands its Canadian facility

Fast-growing Silicon Valley NetSuite Inc. is expanding its Canadian operation. A leader in business application software, NetSuite is moving into a 40,000-plus square foot facility in the Greater Toronto Area. The new facility will help the company accommodate the growing demand for its award-winning products, including NetSuite, NetSuite Small Business and NetCommerce.

McAfee expands its Canadian R&D facility

Santa Clara, CA-based McAfee, well known for its intrusion prevention solutions, has expanded its Canadian Consumer Product Software Research and Development facility in Waterloo, Ontario. The Waterloo operation is responsible for worldwide development of McAfee’s Personal Firewall Plus, McAfee AntiSpyware and McAfee Spamkiller, as well as other consumer products. The facility, which currently accommodates 50 software specialists, has the potential to grow to as many as 100 in the new space.

New made-in-Canada vehicles unveiled at North American International Auto Show

DaimlerChrysler AG and Honda Motor Co. Ltd. both unveiled new made-in-Canada models at the recent North American International Auto Show in Detroit. DaimlerChrysler’s new Dodge Charger begins production this spring at the company’s Brampton, Ontario assembly plant where the company’s hot-selling Chrysler 300 sedan and Dodge Magnum station wagon are also produced. Honda’s new Ridgeline, a sport utility vehicle that continues the company’s move into the light truck market, has already started rolling off the line at Honda’s Alliston, Ontario facility. The Alliston facility also produces the made-only-in-Canada Acura EL and Acura MDX.

Ontario government to create a new Centre of Excellence for Energy

The Ontario government is investing US$6.4 million (Cdn$8.1 million) to create a new Centre of Excellence for Energy. The funding is part of the government’s US$1.44 billion (Cdn$1.8 billion) commitment to support research and commercialization. The new Centre aims to bring made-in-Ontario energy efficient solutions to market by fostering links among research institutions, business and energy industry experts. It will operate as a division of the Ontario Centres of Excellence Inc., a non-profit corporation established by the Ontario government in 1987 to support research excellence. To date, Ontario Centres of Excellence Inc. has attracted US$19-plus million (Cdn$24-plus million) in investments from the private sector.

Ericsson and Critical Telecom team up to expansion

Swedish-based telecom giant Ericsson is expanding its broadband access offering through an agreement with Ottawa-based Critical Telecom, a leader in broadband enabling platforms for New Generation Access Networks. By integrating Critical Telecom’s innovative technology into its portfolio, Ericsson will be able to deliver cost-effective new generation broadband access services such as IPTV to its clients.

For more information about Ontario from the U.S., visit www.2ontario.com or call 1 800 819-8701

from the U.K., visit www.2ontario.com or call 00-800-4668-2746