St. Thomas, Ont. — The Ontario government is throwing its support behind a $107-million expansion by Element5, a homegrown mass timber manufacturer, in a move that promises to create 150 new jobs and strengthen the province’s foothold in sustainable construction.
The St. Thomas expansion will double Element5’s production capacity and increase the domestic supply of glued-laminated and cross-laminated timber, key components in modular housing and large-scale wood construction. Provincial officials said the project underscores Ontario’s strategy to grow its advanced wood construction sector while helping local workers weather global trade pressures.
“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.”
Provincial Support and Strategic Investment
To help secure the project, the government is providing $8 million through the Invest Ontario Fund, part of a broader $50-million commitment over five years to build capacity in modular and prefabricated wood-based construction. Officials said the funding will support machinery upgrades, new technologies, and production efficiencies.
“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.”
The announcement comes as Canada’s forestry sector faces persistent U.S. tariffs on softwood lumber. By boosting the domestic supply of advanced timber products, Ontario hopes to reduce exposure to trade volatility while positioning itself as a North American leader in sustainable construction.
Growing Industry and Global Ties
Founded in 2015, Element5 has built a portfolio of projects ranging from residential buildings to municipal infrastructure. Its St. Thomas facility is among the first fully automated timber plants in North America that sources its materials locally. Elgin County’s longstanding tradition of timber manufacturing has also attracted international investment, including from Austria-based wood giant the HASSLACHER group.
“The opening of our new site in Canada marks a major milestone – for Element5 as well as for the entire HASSLACHER group,” said Christoph Kulterer, CEO and Owner of the 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.”
Local and Sectoral Impact
Provincial leaders emphasized the potential for job creation and community development.
“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,” said 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,” added Kevin Holland, Associate Minister of Forestry and Forest Products. “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.”
Local representatives also underscored the importance of the investment. “I am proud that Element5 has chosen to continue its local success story and expand their operations here in St. Thomas,” said Rob Flack, Member of Provincial Parliament for Elgin-Middlesex-London. “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.”
Part of a Larger Strategy
Ontario’s manufacturing sector employs roughly 830,000 workers and plays a central role in regional economies. The government has committed more than $13 million to research, development, and innovation projects aimed at enhancing advanced wood construction. Since its inception, Invest Ontario has helped companies announce more than $7.6 billion in investments, creating over 9,700 jobs.
For Element5, the expansion represents both a business milestone and a contribution to Canada’s climate goals. With increasing demand for affordable housing and sustainable infrastructure, the company and its partners see a strong future for mass timber.
“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,” said Khawar Nasim, CEO of Invest 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.”
