Sunny Corner Enterprises has purchased equipment for an assembly line and distribution centre, as well as an expansion of their existing paint shop.
Premier David Alward says the money is allowing the company to expand its operations and increase its competitiveness.
The company is fabricating drill rigs for Major Drilling, and Sunny Corner president Gordie Lavoie says 85 jobs have been created so far.
The provincial government is spending $1.68 million, while the federal government is contributing $532,000.
Sunny Corner Enterprises is investing $2.2 million.