Canada’s largest food can maker investing $80 million in new Chatham facility

Ideal Can has made an $80 million investment, bringing an empty factory back to life. CTV Windsor’s Sanjay Maru has the details.

Canada’s largest food can maker is investing $80 million to reopen a long-vacant factory in Chatham — and business leaders hope the move will help lower costs by keeping more processing in Canada, instead of shipping crops to the U.S. and buying them back at higher prices.

Quebec-based Ideal Can, the country’s largest food can producer, will take over the former Crown Metal Packaging plant on Irwin Street, which has been empty for nearly a decade.

Ideal Can’s operations are expected to resume at the site in February, according to company CEO Erick Vachon.

The location was chosen because it sits in the middle of Ontario’s food processing belt, close to major canning and tomato operations in Leamington and Dresden, according to Vachon.

“In this area, you have six major fillers,” Vachon said.

“That is why we chose this facility.”

He added that roughly 90 per cent of the products canned in the region are tomato-based, with beans, corn and potatoes making up the rest.

At full capacity, the Chatham facility will produce about one billion cans each year and employ roughly 100 people.

“It will run exactly like our Quebec facility,” Vachon said.

“We produce 24 hours a day, six days a week, with one day reserved for maintenance.”

The company is planning a gradual ramp-up, with new production lines arriving every six months. Each line is designed to handle a specific diameter of can.

“You have six different sizes of cans on the market,” Vachon said.

“So, we need six different lines to cover them all.”

Local business leaders expect the project’s impact to go well beyond the plant floor.

“From a dollar perspective, the economic activity can be upwards of three times the initial investment,” said Rory Ring, president and CEO of the Chatham-Kent Chamber of Commerce.

“So, we could be talking about an economic impact of $240 million plus.”

Ring noted that while 100 people will be directly employed at the factory, the ripple effects through suppliers, contractors and logistics will be far greater.

“These 100 jobs can result in anywhere from 300 to 500 jobs because of the supply chain,” he said.

Ring said the move builds on the growing “Buy Canadian” movement, spurred by U.S. tariffs, which have boosted sales of Canadian goods and opened the door for businesses to capture more of that value at home.

“This is always great to see us add value, as opposed to shipping it to the U.S. to be processed and then buying it back for twice as much,” Ring said.

“It really starts to show how Canadians can buy Canadian, still be competitive and compete globally.”

Ring added that tariffs have driven up costs for businesses and families, making Ideal Can’s investment into Chatham especially timely.

“All those input costs are on the rise,” he said.

“That presents a unique challenge, with more exposure to being at risk for housing, to being able to pay the bills, to feed your family and other priorities.”

Ideal Can’s expansion into Ontario was planned before the trade disputes began, Vachon said. But, he added, the tariff climate makes the investment even more advantageous for consumers.

“The only winners from tariffs are the customers, because when the fillers choose Ideal Can, the price for Canadians doesn’t increase in the market,” the CEO said.