25th October 2020

INDUSTRY APPLAUDS INVESTMENT FROM GOVERNMENT

The Chemistry Industry Association of Canada (CIAC) and the Canadian Paint and Coatings Association (CPCA) both welcomed measures the government says in its Fall Economic Statement will ensure Canada is a competitive environment for industry investment.

“These measures, complemented by those recently announced in Ontario and Alberta’s enhancements to the Petrochemicals Diversification Program and Petrochemical Feedstock Infrastructure Program, help make the case that Canada is, once again, providing a competitive business environment and is open to investments in the chemistry sector,” says Bob Masterson, President and CEO of CIAC. “With over $20 billion in new investment opportunities currently under consideration in our sector, measures such as these will help turn those prospects into reality.”

Gary LeRoux,President and CEO, CPCA, says, “The biggest issue for our members is the need to have less regulatory burden and greater alignment with the United States where more than 50 per cent of coatings products sold in Canada are now shipped from. Government should move quickly to stem the flow of manufacturing to the United States and recommit to stabilizing and growing the manufacturing base here in Canada. The lowering of the effective corporate tax rate will also help in that regard.” 

CIAC says Canada has world-class, low carbon resources to support chemistry manufacturing. Historically, Canada has attracted approximately 10 per cent of the total chemistry investments made in North America, but recently this share has plummeted to two per cent. The association is pleased to see that an additional $800 million in funding has been allocated to the Strategic Investment Fund which has been valuable in attracting chemistry investment to Canada. The recommitment to National Trade Corridors Fund is also important to ensure market access for the anticipated increased production in the chemistry sector.

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