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Global Chemical Companies That Chose Canada

Global Chemical Companies That Chose Canada. World’s Largest Homogeneous Chemical Market. North American… chemical production of $470 billion in 1999 market growing at 4.5% per annum Canadian chemical production growing at 7.5% per annum 99/00

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Global Chemical Companies That Chose Canada

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  1. Global Chemical Companies That Chose Canada

  2. World’s Largest Homogeneous Chemical Market • North American… • chemical production of $470 billion in 1999 • market growing at 4.5% per annum • Canadian chemical production growing at 7.5% per annum 99/00 • A highly integrated market with 85% of Canadian chemical production destined for US customers • 23 of world’s 25 largest chemical companies have located in Canada World Market

  3. Proximity to North American Industrial Clusters Central Canadian locations within one day’s trucking of……54% of North American manufacturers…70% of US automotive industry Western Canada offers efficient access to Asia Pacific and U.S. West Coast markets Canada’s efficient road and rail infrastructure is highly integrated with US systems to get products quickly to markets

  4. The Canadian Advantage – Labor • Available and skilled workforce • joined each year by 25,000 math, science and engineering graduates • High-quality education system responsive to industry needs • 3 of Canada’s Chemical Engineering Schools rank in North American top 6 Two-thirds the cost of US labor for professional and technical services Labor productivity growing at an average annual rate of 4% since 1988. Excellent record of employee loyalty * Tertiary education enrollment standing among the 53 countries considered in the global Competitiveness Report, 1998

  5. The Canadian Advantage – Feedstock Costs Canada has lower costs for gas.

  6. The Canadian Advantage – Energy Abundant supplies of natural gas, oil, coal and hydro-electric energy Annual Electricity Costs — 1998 Long-term, guaranteed availability of low-cost electricity Stable and low-cost natural gas Committed to enhancing competitiveness through aggressive deregulation G-7 Comparison, Index: U.S. = 100 Canada U.S. U.K. France Germany Italy Japan +200 50 75 100 125 150 175 Province - State Comparison Index: U.S. = 100 Manitoba British Columbia Saskatchewan Newfoundland Nova Scotia Alberta Quebec New Brunswick P.E.I. Ontario Washington Minnesota Colorado North Carolina Massachusetts Texas Pennsylvania California Vermont New Jersey 0 25 50 75 100 125 150 Source: KPMG Management Consulting, 1999

  7. CORPORATE TAX COMPETITIVENESS

  8. The Canadian Advantage – Profitability • After a restructuring phase in the late eighties and early nineties, the industrial chemical industry has shown impressive profit rates • The profit rate of the Canadian industrial chemical industry in 2000 was 28% compared to the US industry rate of 20%.

  9. Supportive R&D Environment Hospitable investment environment • Government policies based on co-operation, not confrontation Strong support for innovation • lowest cost R&D in the G-7 countries World-class research centers support chemical industry growth and innovation Relative Competitiveness of R&D Tax System 1.05 Germany 1.03 Italy 1.02 Sweden 1.01 Japan 1.00 U.-K. 0.97 Mexico 0.92 Korea 0.91 France 0.89 Australia 0.88 U.S. 0.70 Canada Government support for R&DMost favorable tax treatment of R&D expenditures among major industrialized nations

  10. Chemical Industry Response to Canadian Advantages Investment in Canadian Chemical Sector $4 billion in new investments announced last year Source: Statistics Canada Private & Public Investment in Canada

  11. Contact us! To find out more about the advantages of Canadian locations for chemical production, call:Rick Thomas Tel. (613) 954-3176 Fax (613) 941-8048 E-mail: thomas.rick@ic.gc.ca URL: http://strategis.ic.gc.ca/chemicals.html

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