An Aurora auto parts maker will get $2.4 million in provincial money to help it develop a new high-output exhaust system.
The Axiom Group product is touted to be smarter, greener and less noisy than current components.
The company is investing $16 million in the project, which will secure the jobs of 95 workers and help it hire at least 33 more.
"We want to make sure that if in fact we have a company that is a potential world leader ad it has raised the capital -- even in these circumstances -- to make an investment in improvements, if they meet all the criteria, boy that's a pretty good investment for the public," Economic Development Minister Michael Bryant told reporters Friday.
Ontario has a Next Generation Jobs fund. It is designed to help companies with their growth plans, but the firms must also invest their own money.
Aurora is home to Magna, which announced that two auto parts plants wold be closed by June, eliminating about 850 jobs.
The auto industry across Ontario, North America and the world is in dire straights.
Many of Ontario's Big Three assembly plants are currently on hiatus as plunging demand as a result of the deepening recession has meant rising inventories.
Even global market leader Toyota is reported to be mulling cutting 1,000 jobs at its North American -- although workers at its plants in Cambridge and are reportedly safe.
Workers at Axiom's plant were relieved that their their jobs appear to be safe for the near future.
"I know what's happening in Oshawa, what's happening in Brampton. I could see all that," said Roah Afza. "So I was really worried about what was going on. But by God's grace today, everything is good today. We feel relieved today."
Munir Hussain said the good news means he and the other workers will be able to continue to pay their mortgages.
With a report from CTV Toronto's John Musselman and files from The Canadian Press
