Cisco plans $4-billion investment in Ontario, could create 1,700 jobs

Cisco Systems Inc. is making a major bet on Ontario, with investment plans for up to $4-billion to build research and development facilities that will create up to 1,700 high tech jobs in the coming years.

Premier Kathleen Wynne and Cisco Canada President Nitin Kawale are set to announce the 10-year agreement on Friday. The job creation expected over the next six years will be centred on R&D, with the potential to grow further to 5,000 employees by 2024.

The Ontario government is kicking in up to $220-million as part of the initiative.

The move comes amid rapid shifts in Canada’s most populous province, with job growth in some sectors, such as health care, offset by declines in others, such as manufacturing which saw the announcement of two more factory closings this week alone. The provincial government is hoping this agreement positions the province as leader in technology innovation and R&D.

Cisco cited the province’s skilled work force, strong educational institutions and competitive business as factors behind its expansion plans.

With the province, “we will create, high-value jobs that will stimulate the economy,” said Mr. Kawale in a release. “This initiative will also ensure that Ontario continues to be a leader in the information and communications technology industry, with a vast talent pool representing the country’s next generation of innovation.”

The initiative adds to the company’s growing presence in the province, which include investments in university chairs, planning for an expanded Toronto headquarters and Pan Am Games sponsorship.

The potential investment of up to $4-billion includes $2.2-billion in salaries alone. Cisco, the world’s largest maker of computer-networking equipment, now employs more than 1,500 people in Canada.

It’s a welcome splash of good news for the government. A spate of large manufacturing facilities announced plans to close in recent weeks, and the province’s unemployment rate, at 7.2 per cent, is lower than last year but higher than the national average of 6.9 per cent.

“Today’s announcement is about supporting our talented technology workers,” the Premier said in the release. “Together, we’re going to show the world what Ontario can do.”