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Plastics

The Case for the Canadian Plastics Industry

With over 3,400 companies employing 113,000 workers, Canada's $33-billion plastics industry is a sophisticated, multi-faceted sector encompassing plastics products, machinery and moulds, and synthetic resins. Canadian machinery manufacturers have gained an international reputation for high quality injection moulding, thermoforming machinery, blown film extrusion systems, extruders for corrugated pipe and other plastic profiles.

Canada’s plastics industry is closely integrated with other advanced manufacturing sectors such as aerospace, automotive, medical devices and telecommunications. Most companies are Canadian-owned small- and medium-sized firms seeking partnerships and alliances to grow their business and share the rewards of investing in Canada.

Look what Canada has to offer

  • The top 3-and 6 of the top 10-North American mould makers in 2008 were Canadian companies
  • 6th largest global exporter of moulds in 2007
  • 85% of plastics exports are bound for the U.S.
  • Lowest production costs for the plastics sector among G7 countries
  • #1 in the G7 for quality of life

Sector strengths

Plastic Products

Canadian exports of plastic products have grown spectacularly from 18% of total shipments in 1990 to 44% in 2008, when exports totalled $7.8 billion. Canada’s plastics processing industry represents 4.2% of manufacturing GDP and 5.3% of total manufacturing employment. Growth in the Canadian plastics industry has been fuelled by a dramatic increase in domestic capacity to produce synthetic resins. Over 2,600 firms process synthetic resins into plastic products generating shipments worth $17.9 billion and employing more than 86,000 people.

Machinery and Moulds

Among Canada’s many assets are its highly skilled machinists and technicians. Canadian mould producers have recognized expertise in a wide range of injection mould and blow mould capabilities, due largely to their strong technical skills, high quality, specialization in specific mould types and relatively short delivery times. Another Canadian advantage is the close business relationship between mould makers and plastics processors. Many mould makers offer turnkey services, acting as project managers for the entire design and testing process of the moulds.

Synthetic Resins

Canadian exports of synthetic resins have skyrocketed, from 38% of total shipments in 1990 to 79% in 2008. The Canadian synthetic resins industry had shipments of $9.0 billion in 2008, and employed 6,300 people at 160 establishments. Of total exports, 83% are destined for the U.S. Canadian firms benefit from Canada’s vast energy reserves, lower salaries and higher level of output per employee than the U.S., and state-of-the-art technology utilized by the industry. Plants based in western Canada produce commodity-grade thermoplastic resins from raw materials derived mainly from natural gas, while those in central Canada produce both thermoplastic and thermoset resins using raw materials derived from both crude oil and natural gas.

Competitive clusters

Canada has world-class clusters of companies that encompass the full length of the supply chain. The plastics industry is present in all provinces of Canada, but is concentrated in Ontario, Québec, Alberta and British Columbia. Central Canada benefits from the synergy that result from having groupings of firms in all four subsectors of the industry – synthetic resins, plastics processing machinery, moulds, and plastic products. Alberta is the largest producer of petrochemicals in Canada, the essential ingredients to make plastic products. In British Columbia, the plastics industry has grown to satisfy both domestic and export markets. Whatever the location, these clusters offer high-quality, low-cost operating environments that provide even better levels of profitability.

Toronto
The business and financial centre of Canada, the Greater Toronto Area is home to the corporate headquarters for industry leaders such as BASF Canada, DuPont Canada, Husky Injection Molding Sytems, Mold-Masters, ABC Group, Woodbridge Group and StackTeck Systems.

Montréal
Montréal has an integrated cluster ranging from petroleum refineries to petrochemicals to plastic products. The location offers a tanker terminal for ocean shipments and direct access to the large eastern and central U.S. and Canadian markets. The region's vast supply of diverse and relatively inexpensive energy provides another advantage to manufacturers.

Edmonton
Edmonton, and its surrounding region, is home to an integrated complex of upgrading, refining, petrochemicals and plastic products. Exceptional economic growth, driven largely by new investments in the oil sands, has created strong demand for producers along the total value chain.

Vancouver
Vancouver is Canada's gateway to the Pacific. A strong cluster of firms producing plastic products has evolved in the Vancouver area – both to serve local markets and for export to the fast-growing markets along the western U.S. seaboard and to Asia.

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