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Canada Loans C$195 Million to Xanadu to Build Toronto Quantum Photonics Plant

Ottawa made a repayable Strategic Response Fund loan tied to future revenue to preserve Canadian photonics manufacturing pending provincial agreement.

Overview

  • The federal government confirmed a C$195-million repayable loan to Xanadu through the Strategic Response Fund to help build the Inception photonics facility in Etobicoke, Toronto.
  • Xanadu said repayments will be calculated as a percentage of future revenue and that the project will be the company’s global manufacturing, packaging and assembly site.
  • The Etobicoke plant will occupy a 158,000-square-foot former Campbell’s facility, is part of an overall project reported at about $893 million, and is expected to create roughly 275 jobs.
  • Xanadu is seeking up to an additional C$195 million from the Ontario government to complete the previously announced C$390-million public support package.
  • The loan aims to keep advanced quantum manufacturing in Canada as U.S. federal and state incentives increase competition for firms, talent and investment, and Canada watches for whether more provincial or federal backing follows.