Sarnia - A Leading Investment Location for the Chemical Sector

With its vast network of petrochemical and petroleum refining complexes, Sarnia-Lambton is known internationally as an industrial chemical center . It's home to multinational firms like: BP Energy, Bayer, Dow Chemical, DuPont, Exxon (through its Canadian affiliate Imperial Oil) Basell, Invista, NOVA Chemicals, Shell and Suncor.

In addition to chemicals, the region produces produc ing Our industrial community is a significant producer of chemicals, plastics, synthetic rubber and a variety of oil-based products for both North America and offshore markets.

Key to the development of our chemical sector is Sarnia-Lambton's strategic location, transportation infrastructure and its assured access to raw materials as major pipelines provide crude oil, natural gas, natural gas liquids, ethane and ethylene.

The Sarnia-Lambton area has an extensive infrastructure of services that surround capital-intensive projects like chemical plants that cost in excess of $1 billion to construct and maintain.

Outstanding Industrial Growth

• Available labor pool: over 62 500+ skilled workers
• Available zoned industrial land with infrastructure: 8200+ acres ; costs can be as low as C$3000 per acre

Opportunities for the Chemicals Sector

• Sarnia offers a significant cluster of chemical, refining and R&D facilities
• Sarnia is a major source of volume organic chemicals supplying eastern Canada and the American mid-west
• Manufacturing opportunities exist in polypropylene products as raw materials in Sarnia are in abundant supply
• Sarnia is in the heart of the market for: adhesives, inks, coatings, automotive parts, construction products and consumer goods

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
• Bayer has recently expanded it s synthetic rubber plant
• Imperial Oil (ExxonMobil) invested US$20 million to expand its Sarnia polyethylene plant and they are investing C$120 million in an electricity and steam co-generation plant, which is scheduled for start-up in is expected to 2004

A Skilled Labor Force

• Sarnia's skilled-labor pool is exceptionally strong in the areas the sciences, engineering, process operations, instrumentation, metal fabrication and business management . An additional labor force of 315 000+ workers is available within a 60-mile radius
• Almost 70% of the region ' s manufacturing employment is involved in chemicals and related industries

Market Access/Transportation

• 20+ long and short-haul freight carriers and 17 customs brokers operate here
• CN Railway runs 40 trains daily; over 87% of its freight is produced in the Sarnia-Lambton area
• Sarnia offers immediate access to the Great Lakes Industrial Corridor and the American mid-west and northeast

Business Climate

• The region has one of the most reliable energy systems in Ontario
• In Sarnia, Specialized support skills have been developed in: plant construction, process engineering, process operations, training, environmental technology and environmental management
• Property tax rates are extremely competitive

Cost Advantages

• Ontario's combined (provincial and federal) corporate income tax rate for manufacturing is 4% below the U.S. average
• Sarnia offers competitively priced feedstocks, electricity and natural gas

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, high speed broadband options through DSL and cable, 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

• Compared to other urban areas in Ontario, Sarnia-Lambton offers a variety of residential accommodation at extremely affordable prices
• Ontario offers high-quality education and universal health care. Versus the U.S., Ontario employers pay about 1/6 of the cost of employee health care
• Sarnia is a golfer's paradise with 18 public golf courses throughout the region

Contact

Mike Ireland, Senior Development Consultant
Sarnia-Lambton Economic Partnership
Tel.: (519) 332-1820
E-mail: Ireland@sarnialambton.on.ca
Web site: www.sarnialambton.on.ca