Ontario - A Leading Investment Location for the Chemical Sector

Ontario is the engine of the Canadian economy and is fully integrated into the economic fabric of the USA and NAFTA. In fact, 93% of our exports are to the U.S.

Ontario's chemical industry supplies markets and customers around the world. We have a strong and diversified industry, a highly skilled workforce, abundant and secure feedstocks and natural resources, a first class infrastructure and KPMG's just published, Competitive Alternatives, 2004 edition, rates Ontario cities among the most cost-competitive in which to do business.

Outstanding Industrial Growth

Ontario: 

• is the engine of the country, accounting for 42% of Canada's real GDP
• generates over half of Canada's total chemical production
• manufactures "formulated and specialty chemical products" at lower costs than competing U.S. and offshore jurisdictions
• chemical exports were estimated at US$7.4 billion in 2003

Opportunities for the Chemicals Sector

Ontario provides: 

• significant cluster power in chemical manufacturing, refining and R&D facilities
• opportunities to supply key market sectors like: automotive, plastics, construction and consumer products
• opportunities to work with high-caliber universities and a strong R&D community

Major Companies Invest With Us

• Suncor plans to build a 208 million liter fuel-grade ethanol plant for C$120 million, which is scheduled to start-up in 2006
• TransAlta Energy Corporation completed the construction of a C$400 million, 575 MW electricity and steam co-generation plant; the largest facility of its kind in Canada
• Imperial Oil (ExxonMobil) invested US $20 million to expand its Sarnia polyethylene plant and are investing C$120 million in an electricity and steam co-generation plant that is scheduled for start-up in 2004
• 3M Canada invested US$15 million to expand its masking tape facility in Brockville, Ontario
• DuPont Canada (now Invista Canada) recently completed the expansion of its nylon facilities in Ontario
• In addition, DuPont Canada is investing C$45 million in fuel cell R&D in Kingston, Ontario
• Jungbunzlauer (Switzerland) invested about US$65 million in a citric acid production plant in Port Colborne, Ontario; it was built and up and running in just 19 months
• ERCO Worldwide completed a sodium chlorate plant in Thunder Bay, Ontario
• Brantford Chemicals will invest C$22 million to expand its pharmaceutical active ingredients multi-purpose facility in Brantford, Ontario

A Skilled Labor Force

• Chemical companies have access to a smart and skilled workforce
• Ontario is home to 2 of the top 10 chemical engineering schools in North America, the University of Toronto and McMaster University
• Almost 3 out of 10 employees in the chemical industry have a university degree

Market Access/Transportation

• More than 50% of the manufacturing activity and 35% of the Canadian and U.S. population is within one day's drive of Ontario
• Ontario is a major trading partner of the U.S.
• The proximity to major U.S. customers gives Ontario's chemical producers a 1.5 cents/pound advantage over Texas and Louisiana

Business Climate

• Ontario's combined (provincial and federal) corporate income tax rate for manufacturing is 4% below the U.S. average
• Ontario offers a streamlined regulatory environment with shortened approval times for permits

Cost Advantages

• Chemical and chemical products sector average hourly wages are as follows:
  • Ontario: US$12.00 /hr.
  • U.S.: US$16.00 /hr.
• Versus the U.S., Ontario employers pay about 1/6 of the cost of employee health care

Technology Infrastructure

• Advanced telecommunications infrastructure provides seamless voice, video and data links with major U.S. carriers, supporting smooth cross-border operations
• Long distance lines are 100% digitally switched. Long distance trunk lines are 100% fiber optic. Ontario has ISDN and ATM technology, fiber ring technology, dynamic routing, full common channel signaling capability, and high capacity Internet access. New satellite and wireless solutions are expected this year

Research and Development

• An Ontario chemical company has a cost advantage of up to 50% for research Scientists
• We have one of the most generous R&D tax incentive programs in the world. In fact, the real cost of $100 in R&D spending can be reduced to less than $42 – when tax credits are factored in
• With four Centres of Excellence, 150+ university and college research centers and dozens of public research institutes, our R&D infrastructure is extensive and sophisticated; and has a history of collaboration with the private sector

Quality of Life

• Ontario offers a high quality of life
• Every Ontarian, irrespective of ability to pay, has medical and hospital insurance
• Ontario's standardized public education system includes 20 universities and 25 colleges

Contact

Ontario Investment Service
E-mail : info@2ontario.com
North America Toll-Free: 1 800 819-8701
Web site : www.2ontario.com