THUNDER BAY — The Ontario government is increasing the Canadian content requirement for 55 new Toronto Transit Commission (TTC) Line 2 subway trains to 55 per cent, a move it says will protect jobs, strengthen domestic manufacturing capacity and help shield key sectors from the impacts of tariffs.
The updated procurement approach represents a nearly 30 per cent increase over the original Canadian content level for the trains, according to the province. Ontario says the decision will support more than 900 good-paying Canadian jobs, while ensuring provincial tax dollars are directed to Ontario companies in industries affected by tariffs, including steel and aluminum.
The project will be delivered in partnership with the federal government, which has agreed to match Ontario’s funding contribution toward the City of Toronto’s purchase.
“Today’s announcement delivers on our government’s commitment to protect Ontario, both by ensuring Ontario tax dollars support Ontario workers and by strengthening and supporting the province’s manufacturing sector,” said the Honourable Prabmeet Sarkaria, Ontario’s Minister of Transportation. “The manufacturing of new subway trains at Alstom’s Ontario facilities will keep skilled workers on the job and ensure Ontario and Canada have the domestic manufacturing capacity that is critical to our economic prosperity and national security.”
Ontario’s new commitment builds on a previous funding announcement made in late 2023. In November 2023, the province committed more than $758 million for the new trains on the condition that the federal government match the investment. Ottawa subsequently matched the funding in November 2024.
With the Canadian content requirement now set at 55 per cent, Ontario says its total contribution has increased to nearly $1 billion, up from $758 million, and will again be matched by the Government of Canada.
“Buying Canadian unlocks the full potential of our communities. By being our own best customer, we are ensuring that Canadians receive the maximum benefit from every tax dollar spent,” said the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada. “Our investment is helping to create good-paying jobs and encouraging economic activity across Canada, while delivering modernized public transit vehicles for our nation’s largest city.”
The province says the investment will support 946 Canadian jobs, including 285 positions at Alstom’s Ontario facilities tied to manufacturing, engineering, testing and program integration. Of those Alstom jobs, 240 are expected to be in Thunder Bay, with another 30 in Kingston and 15 in Toronto.
The announcement was welcomed by local leaders in Thunder Bay, where Alstom operates a major manufacturing facility. MPP Kevin Holland said the project would provide stability for skilled workers and generate broader economic activity in the region.
“This investment is critical for Thunder Bay and for the skilled workers at Alstom who help build and maintain Ontario’s transit system. It helps sustain good-paying jobs and ensures public dollars are invested in Ontario workers and manufacturing. The economic benefits extend well beyond the plant, as wages and local spending are reinvested in our community, supporting small businesses, families, and long-term economic stability across the Thunder Bay region. This work strengthens both Ontario’s economy and Thunder Bay’s economy, while reinforcing our ability to build and maintain critical transit infrastructure at home. Thank you to the provincial, federal, municipal, and Alstom leadership whose collaboration helped bring this important investment to Thunder Bay.”
The province is framing the decision as part of a broader effort to strengthen supply chains and maintain industrial capacity amid global uncertainty. Ontario Minister of Economic Development, Job Creation and Trade Vic Fedeli said the move aligns with the government’s strategy to prioritize Canadian-made inputs and expand domestic capabilities.
“Ontario is a stable, reliable and competitive partner for manufacturing investment, equipped with both the skilled workforce and resources needed to advance projects of economic importance,” said the Honourable Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Prioritizing the use of Canadian-made content in Toronto’s subway trains is one more way our government is delivering on its commitment to protect Ontario workers, strengthening domestic supply chains and reinforcing the industrial capacity that underpins our provincial and national security interests.”
Business and industry groups also highlighted the economic implications of increasing domestic content in major transit purchases.
“This investment demonstrates how strategic infrastructure spending can deliver lasting economic benefits at home as we navigate a new economic reality. By prioritizing Canadian content and leveraging Ontario’s manufacturing capacity – from steel and aluminum production to final assembly – this project strengthens domestic supply chains, supports high-quality jobs across the province and helps insulate our economy from global uncertainty. Building and maintaining transit vehicles here in Ontario ensures long-term resilience, skills development and value for taxpayers.”
Transit advocates said the new fleet will help improve reliability for thousands of daily riders across the Greater Toronto and Hamilton Area.
“The Canadian Urban Transit Association would like to extend our thanks to the Government of Ontario for funding new subway trains for the TTC’s Line 2. Thousands of Ontarians from across the GTHA use the Line 2 subway each day, and this investment will help with providing them with reliable, consistent service.”
Toronto Mayor Olivia Chow said the project will support more frequent service and improve the rider experience as demand grows.
“Line 2 is getting a major boost for the people who ride it every day,” said Olivia Chow, Mayor of Toronto. “We applaud the provincial and federal governments for helping keep transit reliable for Torontonians. These new trains mean shorter waits, more reliable trips, and better connections across the city. We are working to deliver a more affordable, safe and caring city for Torontonians.”
Line 2 spans 26 kilometres and connects Etobicoke to Scarborough. Ontario says the new high-capacity trains will be able to carry up to 1,100 passengers each, supporting rising demand as Line 2 daily ridership is projected to reach 661,000 by 2041.
The province says the current Line 2 trains, now roughly 30 years old, are nearing the end of their expected service life, with maintenance costs expected to rise if they remain in operation.
Municipal and labour leaders in Northwestern Ontario also pointed to the importance of keeping major manufacturing work in-region.
“This announcement demonstrates how strategic, Ontario-made investments can strengthen the entire province. The work being done in Thunder Bay is a powerful reminder that Northern Ontario is a key contributor to building and maintaining the infrastructure that keeps our cities moving and our economy strong. When Ontario invests in home-grown manufacturing and skilled workers across multiple regions, everyone benefits.”
“This investment is a major win for Thunder Bay, securing good local jobs and strengthening our manufacturing sector. We’re proud to see all levels of government recognize the vital role our community plays in building Ontario’s transit future.”
“This contract is great news for our members, great news for our facility, and great news for our whole community. We are excited and ready to get this project started as soon as possible. Amazing things can happen when all three levels of government come together with a common goal that supports great Canadian manufacturing jobs!”
