As developing countries achieve more prosperity and consumers in other parts of the world become increasingly cash-rich yet time-poor, the chemicals and plastics sector as a whole is witnessing an acceleration in demand. ExxonMobil’s report titled “The Outlook for Energy: A View of 2040,” predicts a rise in industrial energy usage by about 30% by 2040, with the chemical sector leading the way.

Canada’s Strengths Perfect for Chemicals and Plastics Sector

Uniquely poised for strength in the chemicals and plastics market sector, Canada has a winning combination of reasonably priced raw materials, a stellar research and development environment, a highly skilled labor force and easy ground transportation access to North America. It’s estimated that Canada’s exports in the chemicals sector will swell by 64% by 2025 and its rubber and plastics sector will grow 100% by 2025.

Generating over CAD $45 billion in exports yearly, the country serves a major role in the world market, providing global companies with a wealth of products, from thermoplastics to sulfur dioxide.

Investments in Canadian Chemicals and Plastics

Q1 2016 saw Sika AG open a mortar and concrete admixtures location in Surrey, BC. This location provides faster to-market capabilities for the company in Canada’s Pacific Northwest. The company now has a total of four manufacturing plants in Canada. In January 2016, German-based Gizeh Verpackungen GmbH & Co. KG revealed their plans to construct a new manufacturing plant in Brantford, Ontario. The company produces plastics products for the food sector, and the venture is expected to total around CAD $3 million. A laundry list of who’s who in the chemicals and plastics sector have a presence in the country, including Dow Chemical, Chevron Phillips, PPG Industries, ExxonMobil, Royal Dutch Shell, Bayer AG and Akzo Nobel.

Opportunities for the Supply Chain

Chemistry Industry Association of Canada’s President and CEO Bob Masterson says, “Looking to 2017, we expect competition for investment and market share to be fierce. All eyes will be on the new administration in Washington. All governments in Canada will need to be attentive and responsive.” A stable and growing sector, the Canadian chemical industry is one of the country’s most prolific exporting industries and employs 87,000 Canadians, creating an abundance of opportunities across the supply chain, from equipment and raw materials to technology and transportation.

Interested in finding out more about investments in Canada’s chemicals and plastics sector and supply chain sales opportunities?

Contact Cornfield & Partners at info@cornfieldpartners.com or call +44 (0)20 7692 0873

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