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Plastics

Canada has Internationally-Recognized Expertise in the Plastics Sector

Global reputation for vast range of plastics sub-sectors—Canada’s plastics sector is a sophisticated and multi-faceted sector that encompasses plastics products, machinery and moulds, and synthetic resins. The estimated value of 2010 shipments was at $17.6 billion, and this includes exports worth $6.7 billion. Canadian firms have internationally-recognized expertise in high-quality injection moulding, thermoforming machinery, blown-film extrusion systems, extruders for corrugated pipe and other plastic profiles.

Source: Industry Canada.

Canada is a leader in research for producing plastic resins from biomass—The technical capacity to produce plastic resins from biomass is improving rapidly and Canada is a leading global centre for research excellence in this area. As oil prices rise, companies that are able to make use of alternative feedstocks— which Canada has in abundance— will enjoy cost advantages and gain market share.

Total shipments of synthetic resins and rubbers reached $6.2 billion in 2010 in Canada, which includes exports of $5.5 billion. Investors in commodity resins are attracted to Canada, primarily to Alberta, due to the raw material advantage that can be realized by locating there. Global leaders such as Dow Chemicals and NOVA Chemicals already have plants in Alberta.

Source: Industry Canada.

Elimination of tariffs on manufacturing inputs—Canada is the first G-20 country to eliminate tariffs on all manufacturing inputs. Most of the reductions occurred in 2010 and, by 2015, all inputs imported by manufacturers into Canada, including chemicals, fibres, stone, glass, metals, as well as tools, machinery and equipment, will be totally duty-free.

Recent Foreign Investments – Plastics

Map of Canada showing four locations: Saskatchewan; Montréal, Quebec; Kingston, Ontario; and Shippagan, New Brunswick

American fertilizer giant Mosaic Co. is investing $3.15 billion to expand its potash production in Saskatchewan by 5 million tonnes over the next 12 years. By 2020, the company will boost annual production of its three Saskatchewan sites by 50 percent to 15.5 million tonnes.
In July 2010, Germany’s Sud-Chemie AG invested more than $75 million in a facility in suburban Montréal that will produce lithium iron phosphate—a key ingredient in rechargeable batteries. The company’s Canadian subsidiary, Phostech Lithium Inc., expects to begin commercial production in 2012.
In January 2011, Invista, one of the world’s largest producers of polymers and fibres, began to significantly increase production at its advanced-development facility in Kingston, Ontario. The plant manufactures nylon airbags and industrial yarn, primarily for the automotive industry.
In November 2009, Jiffy Products Ltd. doubled both total sales and staff at its facility in Shippagan, New Brunswick to accommodate demand for a new biodegradable shrink wrap developed at the plant.