Within weeks, shovels will be in the ground as construction commences on the $7 billion PowerCo gigafactory at the Yarmouth Yards industrial park in St. Thomas.
Thursday morning, the Volkswagen subsidiary announced the awarding of two major contracts for structural steel and foundation work for what will become the largest EV battery manufacturing plant in Canada.
Meredith Gibbons, Chief Procurement Officer for PowerCo Canada called the announcement a major milestone.
She stressed both Steelcon (with six fabrication facilities in Ontario) and Magil Construction (based out of London) are Canadian-owned and operated businesses.
The initial phase of construction will focus on the first cell production building incorporated in the massive facility and will require over 32,500 cubic metres of concrete and 500,000 square feet of formwork.
Steelcon will deploy a dedicated team of over 500 skilled Canadian employees directly on the project, including more than 30 from London and Southwestern Ontario.
“We are proud to partner with PowerCo Canada to build the St. Thomas gigafactory, a project that embodies the future of Canadian industry,” noted Steelcon President Danny Bianco.
According to PowerCo, the foundation work to be delivered by Magil Construction is one of the largest foundation packages to date in Southwestern Ontario. It includes construction of foundations for three buildings, encompassing a total floor area of 850,000 square feet.
Magil President Paul Henke, in a media release stressed, “Our commitment to working with local trades and suppliers means this project will be built by the community, for the community, laying the groundwork for economic prosperity and job creation across Southwestern Ontario.
Gibbons said while the exact start date has yet to be determined, the aim is to remain on schedule for opening the facility in 2027.
PowerCo has locations in Spain and Germany, with the St. Thomas operation being the first in North America.
Gibbons noted they will piggyback on the knowledge gained in the construction of those facilities.
Gibbons advised she is already at work on the next procurement announcement.
She stressed PowerCo is primed to weather whatever economic impacts are churned up during President Trump’s tariff war.
This is the second major announcement from PowerCo this month.
On Aug. 6, the firm launched a hiring campaign with high-quality, well-paying jobs now available.
“So basically what we’re trying to do is now,” advised Norman Wickboldt, Chief Human Resources Officer at PowerCo Canada, “is we are going to have more activity on the actual construction site, and then we will have two, let’s say, locations. One here, we will still use that office here (on Talbot Street in the downtown core), but our focus will then slowly but surely shift to the work that needs to be done at the site.”
Initially there are about 50 job openings, ultimately expanding to about 3,000 jobs in St. Thomas.
Written by Ian McCallum
Photo courtesy Volkswagen Group
