A Winnipeg-based bus manufacturer is establishing a new facility to make electric buses in Canada with the help of nearly $40 million in new funding from the federal and provincial governments.

The funding will allow New Flyer, a subsidiary of the multinational company NFI Group, to entirely manufacture its zero-emission buses in Winnipeg, the province of Manitoba announced Friday.

“It’s about putting a ‘made in Canada’ stamp on the buses that bring people to work in Winnipeg, in Toronto, in Canadian cities that we love so much,” said Manitoba Premier Wab Kinew. during a press conference to announce the funding.

Currently, the company builds bus shells in Winnipeg and then finishes the buses at its facility in Alabama. The company will lease new space where it will conduct final completion and commissioning of city buses, including installation of electric battery chargers and hydrogen fueling, said Jennifer McNeill, an executive at NFI Group Inc.

This is expected to lead to the creation of 250 jobs in Winnipeg, the province said in a news release.

The facility is expected to be operational by the end of 2025.

The federal government is investing $15 million in the project, while the province’s total contribution will be $23.4 million, representing a capital contribution of $10 million, plus an interest waiver of $13. $4 million on the project. an existing loan of $50 million.