Canada's chemistry industry reports record profits, strong investment intentions for 2014
OTTAWA, Dec. 16, 2013 /CNW/ - After a year of record-breaking profits, Canada's chemistry sector plans to make major investments in 2014, according to the 2013 Year-End Survey of Business Conditions released today by the Chemistry Industry Association of Canada (CIAC).
In 2013, the Canadian chemistry industry's operating profits reached $3.5 billion - an all-time record. However, global markets are expected to weaken in 2014, as are prices of many chemical commodities, which could drive sales down a projected 8 per cent next year. In spite of that, CIAC members plan to ramp up their capital investments by 28 per cent in 2014 - to $2.6 billion - to take full advantage of Canada's reduced corporate tax rates, accelerated capital cost allowance, and access to competitively-priced natural gas.
"Our members are committed to modernizing their facilities, and to building new production capacity, so that they're ready to seize the opportunity when global markets inevitably recover," says Richard Paton, CIAC's President and CEO.
"Canada has many policies that encourage investment, but competition is fierce, and governments can do more to ensure that we're the destination of choice for investors."
The Year-End Survey identified the availability and reliability of electricity as a major competitiveness concern for Canadian chemistry companies, with the impact felt most acutely by inorganic chemical producers. Nevertheless, in 2013, Canada's chemistry industry saw:
- sales exceed $27 billion, matching the pre-recession high achieved in 2008; and
- exports rise 8 per cent to surpass $18 billion.
To read CIAC's complete 2013 Year-End Survey of Business Conditions, visit www.canadianchemistry.ca.
The Chemistry Industry Association of Canada is the voice of Canada's $47-billion chemistry sector. CIAC represents the interests of Canada's leading chemistry companies - from petrochemical, inorganic and specialty chemical producers, to bio-based manufacturers and chemistry-related technology and R&D companies. Canada's chemistry industry employs 87,000 Canadians directly, and supports another 435,000 jobs in the Canadian economy.
SOURCE Chemistry Industry Association of CanadaFor further information:
Vice-President, Business & Economics
Chemistry Industry Association of Canada
613-237-6215 x 229