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
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 Canada
For further information:
Vice-President, Business & Economics
Chemistry Industry Association of Canada
613-237-6215 x 229