By Adriano Marchese
ADF Group plans to enter into loan agreement of up to 10 million Canadian-dollars ($7 million) with Investissement Quebec to fund a facility expansion for its subsidiary, Groupe LAR.
The steel superstructure manufacturer said Thursday that the proposed loan would support the C$40 million project that includes enlarging the plant and adding new equipment at the Metabetchouan-Lac-a-la-Croix, Saguenay-Lac-Saint-Jean, part of a broader capital program aimed at boosting the company's steel-fabrication capacity in Quebec. Groupe LAR operates in the machining, welding, and industrial mechanics sectors.
Investissement Quebec is the provincial government's economic development agency which provides loans, financing programs and investment support to help companies expand, modernize and carry out capital projects across the province.
The project will be carried out in parallel with the company's other modernizing efforts in Terrebonne, and the investment from Investissement Quebec aims in particular to adapt a fabrication bay dedicated to structures intended for the Quebec hydroelectric market.
The company has also made another loan agreement under a provincially-sponsored financing program worth C$4 million for the Metabetchouan Project, and another C$1 million for the Terrebonne Project.
ADF said it is continuing to assemble the full financing package needed to carry out both projects, which includes a C$12.5 million contribution from Canada's Strategic Response Fund.
Write to Adriano Marchese at adriano.marchese@wsj.com