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Global Chemical Companies That Chose Canada

Global Chemical Companies That Chose Canada. 1. World’s Largest Homogeneous Chemical Market. North American… chemical production of $430 billion in 1997 market growing at 4.5% per annum Canadian chemical production growing at 7.5% per annum

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Global Chemical Companies That Chose Canada

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  1. Global Chemical Companies That Chose Canada 1

  2. World’s Largest Homogeneous Chemical Market • North American… • chemical production of $430 billion in 1997 • market growing at 4.5% per annum • Canadian chemical production growing at 7.5% per annum • A highly integrated market with 60% of Canadian chemical production destined for US customers • 23 of world’s 25 largest chemical companies have located in Canada World Market 2

  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 3

  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 4 times the rate of the US chemical industry Excellent record of employee loyalty Knowledge Workers - World Rank* * Tertiary education enrollment standing among the 53 countries considered in the global Competitiveness Report, 1998 4

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

  6. The Canadian Advantage – Energy Annual Electricity Costs — 1998 Abundant supplies of natural gas, oil, coal and hydro-electric energy G-7 Comparison, Index: U.S. = 100 Canada U.S. U.K. France Germany Italy Long-term, guaranteed availability of low-cost electricity Stable and low-cost natural gas—more than 40% less expensive than US industrial locations Committed to enhancing competitiveness through aggressive deregulation Japan 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 6

  7. The Canadian Advantage – Environmental Approvals EnvironmentalPermits Established and predictable environmental management systems mean faster approvals Industry/government collaboration focused on voluntary environmental management, minimizing litigation Harmonized federal/provincial approach 1996 time for Approvals Source: Canadian Chemical Producers’ Association (CCPA) 7

  8. Chemical Industry Response to Canadian Advantages Investment in Canadian Chemical Sector $4 billion in new investments announced last year Source: CCPA, 1998 Year End Survey of Business Conditions in the Chemical Manufacturing Industry 8

  9. Contact us! To find out more about the advantages of Canadian locations for chemical production, call:Paul Belzile Tel. (613) 954-3114 Fax (613) 952-4209 E-mail: belzile.paul@ic.gc.ca URL:http://strategis.ic.gc.ca/sc_indps/sectors/engdoc/chem_hpg.html 9

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