04:50 PM EDT, 10/25/2024 (MT Newswires) -- NFI Group ( NFYEF ) , an independent bus and coach manufacturer and a player in electric mass mobility solutions, after trade Friday said its New Flyer subsidiary -- with funding support from the federal government and the government of Manitoba -- plans to expand operations and fully manufacture transit buses in Winnipeg, Manitoba.

According to a statement, the project will involve repurposing of existing space at its Winnipeg production facility and the lease of a new finishing facility for final vehicle commissioning, expanding New Flyer's production capacity by up to 240 equivalent units per annum by 2027.

Friday's statement noted the Government of Manitoba and Prairies Economic Development Canada (PrairiesCan) are supporting the project that will create up to 250 new direct green jobs at NFI and expand Manitoba's Green Economy. Manitoba's contribution includes a C$10 million investment alongside additional cash flow provided by a two-year interest reduction on NFI's current C$50 million provincial loan. PrairiesCan will provide a C$15 million repayable contribution through its Business Scale Up and Productivity Program as part of PrairiesCan's Framework to Build a Green Prairies Economy.

NFI will be co-investing in the project alongside the province and PrairiesCan, to support facility upgrades, zero-emission bus testing, working capital, project administration, and operational costs. Construction activities are starting immediately with the first bus builds taking place in the fourth quarter of 2025, with a continued ramp up through 2026 before achieving the full 240 equivalent unit run rate in 2027.

"Today's announcement is a major milestone for NFI as it allows us to complete full buses in Canada for the first time in nearly fifteen years," said Paul Soubry, President and CEO, NFI.

NFI edged down $0.02 to $16.33 on the TSX, today.