Ontario Investing to Increase Canadian Content in Line 2 Subway Cars

January 15, 2026

Province working with the federal government to keep Ontario workers on the job and strengthen domestic manufacturing capacity in the face of tariffs

THUNDER BAY — As part of its plan to protect Ontario’s economic security and build a province that is more competitive, more resilient and more self-reliant, the Ontario government is working with the federal government to increase the Canadian content in the 55 new subway trains for Toronto’s Line 2 to 55 per cent. This represents a nearly 30 per cent increase over the initial Canadian content in the subway cars, supporting more than 900 good-paying Canadian jobs and ensuring Ontario tax dollars support Ontario companies and industries in tariff-hit sectors such as steel and aluminum. This decision furthers the government’s ongoing work to support a strong, viable manufacturing sector in Ontario that will help the province withstand growing global geopolitical and economic uncertainty.

“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.”

In November 2023, Ontario committed more than $758 million for new trains on the condition that the federal government match the investment to contribute to the City of Toronto’s purchase. The federal government subsequently did so in November 2024. The increase in Canadian content to 55 per cent has led to an increased total provincial investment of nearly $1 billion, up from $758 million, which will 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.”

Funding for this project will support 946 good-paying Canadian jobs, including 285 at Alstom’s Ontario facilities, with 240 in Thunder Bay, 30 in Kingston and 15 in Toronto. The current 30-year-old Line 2 trains are nearing the end of their expected life, which would significantly increase costs to maintain safety if they continue in operation.

“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.”

Line 2 is a 26-kilometre subway line that connects residents from Etobicoke to Scarborough. The new high-capacity trains will be able to carry up to 1,100 passengers each, supporting growing demand on the line, where daily ridership is expected to reach 661,000 by 2041.

“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,” said Kevin Holland, MPP for Thunder Bay–Atikokan. “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.”

Quick Facts

This investment will directly create 285 good-paying jobs at Alstom’s Ontario facility in manufacturing, engineering, testing and program integration. These jobs are part of the more than 900 jobs across Canada in manufacturing and supplier industries.
This investment leverages the province’s Buy Ontario Act by maximizing Canadian content in the new subway trains and ensuring Ontario tax dollars support Ontario workers and manufacturing.
The TTC estimates that by 2041 ridership on Line 2 will increase to 661,000 daily boardings and on Line 1 daily boardings are projected to increase to more than 1.3 million.
Last year, the province invested nearly $500 million to refurbish 181 GO Transit rail cars at the Alstom plant in Thunder Bay and more than $350 million to refurbish 121 GO rail cars at Ontario Northland’s facility in North Bay.
The province is supporting northern industries and the resource sector by bringing back the Northlander, which will connect Toronto to Timmins with a rail extension to Cochrane, improving access to housing, jobs and essential services.
Ontario is investing $70 billion in the largest transit expansion in North America, including carrying out the largest subway expansion in Canadian history by building the Ontario Line subway, the Yonge North Subway Extension, the Scarborough Subway Extension and the Eglinton Crosstown West Extension.