Chemical - CLD Beauharnois

C H E M I C A L
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CHEMICAL INDUSTRY
THE CHEMICAL INDUSTRY IS ONE OF THE MOST IMPORTANT
MANUFACTURING SECTORS OF GREATER BEAUHARNOIS-SALABERRY.
MORE THAN 13 BILLION CAD$ IN REVENUE IN 20081, OR 73% FOR THE
ENTIRE PROVINCE OF QUEBEC WERE GENERATED BY THE 981 BUSINESSES
AND MORE THAN 30,000 WORKERS.
T.1
GREATER BEAUHARNOIS-SALABERRY
Chemical Industry
Number of Businesses
Petroleum and Coal Products
%
Number of
Employees
%
50
5,1
n.a
n.a
Chemical Products
493
50,3
15 844
52,6
Rubber and Plastic Products
Total :
438
981
44,6
100
14 276
30 120
47,4
100
Sources: Portrait of work place, MRC de Beauharnois-Salaberry, Emploi-Québec, 2009; Main statistics in the
manufacturing sector, for total operations, by administration regions and sub-sectors of SCIAN, Québec, 2008,
Institut de la statistique du Québec and Portrait of work place, MRC de Beauharnois-Salaberry, Emploi-Québec,
2009.
As a basic business, the chemical industry plays a pivotal role in the supply of materials and
innovative and determining technological solutions for the industrial competitiveness of Greater
Beauharnois-Salaberry. It is essential in numerous areas, including services related to the
environment, automotive or aeronautical industries and construction materials, all of these located
in Beauharnois-Salaberry; it is, therefore, an asset to its economy. Very competitive on an
international scale, the chemical industry is part of a leading group of exporting industries in the
region. The chemical industry is a sector with a future for the territory since it relies on innovation to
support its growth.

A highly competitive business environment: 3% lower operating costs compared to large
metropolitan centres of the same size;

A qualified and accessible work force: 67% of the Quebec work force in the chemical industry
3
are in the Greater Beauharnois-Salaberry, which groups 61% of businesses in the chemical
industry in Quebec;

Transportation infrastructures compatible with your business; such as two deep-water
ports on the greater territory;

Direct access to the port and railway from your industrial park to facilitate your supply
of raw materials and export of your products as well as access to the large Canadian
and American markets;

Access to reliable water and power sources to insure your production ;

Nine training programs adapted to the needs of the industry in order to train and
develop your employees;

More than 10 research and chemical technology transfer centres grouping 200
researchers to assist your research and development.
1
2
Source: Statistics Canada, Annual survey in the manufacturing and forest industries, 2006, 2007 & 2008.
Compilation : Institut de la statistique du Québec, sectional statistics and sustainable development service.
2
Source: Main statistics in the manufacturing sector, for total operations, by administration regions and subsectors of SCIAN, Québec, 2008, Institut de la statistique du Québec.
3
Source: Main statistics in the manufacturing sector, for total operations, by administration and sub-sectors of
SCIAN, Québec, 2008, Institut de la statistique du Québec.
By establishing
your chemical
business in
BeauharnoisSalaberry, you will
benefit from:
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PROFITABLE OPERATING COSTS
BY SETTING UP YOUR BUSINESS IN BEAUHARNOIS-SALABERRY, THE
SAVINGS IN YOUR ANNUAL OPERATING COSTS WILL BE, ON AVERAGE 3%4,
IN COMPARISON TO SOME AMERICAN CITIES (NEW YORK, PHILADELPHIA)
AND LARGE INDUSTRIALIZED COUNTRIES SUCH AS GERMANY, FRANCE, THE
UNITED KINGDOM, JAPAN AND AUSTRALIA, ALL ACTIVE IN THE CHEMICAL
INDUSTRY.
T.2
KPMG COMPETITIVE CHOICE
STUDY
2010 PERSONALIZED SIMULATION
CHEMICAL PRODUCTS
Beauharnois-Salaberry1
provides low
operating costs for a
chemical business,
according to the
comparative study by
KPMG (2010).
COST IN US$ ‘000
NORTH AMERICA
ASIAN PACIFIC
EUROPE
Philadelphia
Japan
Australia
 Taxes on Profits1
New York
Profits Before Taxes
BeauharnoisSalaberry
Total manpower
Site rental
Transportation
Utilities
Interest and
depreciation
 Taxes (excluding
profits))
 Costs not related
to location
United
Kingdom





Germany
Costs
 Salaries
 Compulsory fees
 Optional fees
France
Revenues
48 200
48 200
48 200
48 200
48 200
48 200
48 200
48 200
4 872
2 204
1 022
6 758
1 137
1 452
5 301
506
1 781
6 040
545
2 367
5 543
510
2 173
7 261
705
1 821
5 870
764
1 333
8 098
342
546
1 028
2 328
9 347
427
489
1 259
2 438
7 588
697
508
1 045
2 375
5 465
575
1 389
7 429
271
1 054
853
2 367
8 951
500
682
893
2 434
8 225
185
781
721
2 380
9 788
792
465
1 147
2 547
7 968
359
1 061
1 055
1 937
590
147
428
224
661
307
632
96
29 402
29 402
29 402
29 402
29 402
29 402
29 402
29 402
5 868
4 694
6 158
6 601
4 678
6 199
3 429
6 324
1 342
1 920
1 249
1 503
28,7 %
31,0 %
36,4 %.
23,8 %
3 356
4 279
2 181
4 821
44 864
101,0
8
43 921
98,9
6
46 020
103,6
10
43 379
97,7
2
1 588
1 443
1 496
27,1 %
30,7 %
24,3 %
Profits After Taxes
4 281
3 251
4 663
1 222
18,5%
5 380
Total Annual Costs
Index (US=100)
Rank
43 920
98,5
5
44 950
101,2
9
43 537
98,1
3
42 821
96,4
1
Actual rate
1
Source: KPMG (2010) comparative study, personalized modelling, chemical products, for certain selected cities
and countries; the results of Greater Montreal ascribed to Greater Beauharnois-Salaberry.
4
Source: KPMG (2010) comparative study, personalized modelling, chemical products, for certain selected cities
and countries; the results of Greater Montreal ascribed to Greater Beauharnois-Salaberry
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MANPOWER
THE AVERAGE ANNUAL SALARY THAT YOUR BUSINESS WILL PAY IS
$50,586 CAD.
T.3
GREATER BEAUHARNOIS-SALABERRY - MANPOWER
Chemical Industry
Chemical Products
Rubber and Plastics Products
2008
Average Annual Cost of Manpower ($ CAD)
44 636
50 586
Source: Main statistics in the manufacturing sector, for total operations, by administrative region and sub-sectors
of SCIAN, Institut de la statistique du Québec, 2008. The average annual cost for manpower includes salaries and
fringe benefits.
POWER
BEAUHARNOIS-SALABERRY HAS ONE OF THE LOWEST ELECTRICITY AND GAS
RATES IN NORTH AMERICA. IT COSTS 6% LESS COMPARED TO SOME LARGE
AMERICAN CITIES AND INDUSTRIALIZED COUNTRIES. THE AVERAGE
ELECTRICITY RATE THAT YOUR BUSINESS WOULD PAY IS 8.11¢ CAD/KWH
AND GAS IS $0,235CAD/M3.
T.4.1
ELECTRICITY
Industrial Consumption
Less than 100 kWh
Cost for 30 days
50 kWh and more
First 15 100 kWh (small) and first 210 000 kWh (medium)
Higher
100 kWh & 5 000 kWh
Cost for 30 days
More than 50 kWh (small and medium)
First 15 100 kWh (small) and first 210 000 kWh (medium)
Higher
2010
Electricity rates ($ CDN)
$10.91/kWh (fixed rate)
$13.27/kWh
8.30 ¢/kWh
4.20 ¢/kWh
$11.57/kWh
$12.40/kWh
3.71 ¢/kWh
2.42 ¢/kWh
Source: Hydro-Québec
T.4.2
GAS
Industrial consumption
3
32 850 000 m / year (1 245 000 GJ/year)
3
82 125 000 m / year (3 112 000 GJ/year)
Source: Gaz Métropolitain
2010
Gas rates ($ CAD)
3
$0.237/ m ($6.25/GJ)
3
$0.232/ m ($6.12/GJ)
Manpower costs are,
on average, 11%
lower in the region
than in large
American
cities and large
industrialized
countries.
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LAND AND CONSTRUCTION
IT WILL COST 23% LESS FOR YOUR BUSINESS TO LOCATE IN BEAUHARNOISSALABERRY COMPARED TO LARGE AMERICAN CENTRES AND
INDUSTRIALIZED COUNTRIES ACCORDING TO THE KPMG COMPETITIVE
CHOICE STUDY.
Beauharnois-Salaberry offers land at very competitive prices with all utilities starting at $0.30
CDN/sq. ft.; this purchase cost is one of the lowest in North America. As for building a factory,
5
according to a Secor study, the costs are 1.5% lower compared to large North American
metropolitan cities.
T.5
CONSTRUCTION
Industrial Construction
AVERAGE COST PER SQUARE FOOT ($CAD)
Greater BeauharnoisSalaberry
Average for large
metropolis
116
118
Factory, 3 storeys
Difference
Montreal
(%)
-1,5
Source: Comparative study of construction costs in Canada, Secor, September 2010.
FINANCING
FINANCING COSTS FOR A BUSINESS ARE ALSO LOWER BY 7% IN
BEAUHARNOIS-SALABERRY IN COMPARISON TO LARGE AMERICAN CENTRES
AND INDUSTRIALIZED COUNTRIES; WHICH COULD BE OF GREAT HELP IN
ESTABLISHING YOUR BUSINESS IN OUR REGION.
GOVERNMENT AID
GENEROUS GOVERNMENT AID PROGRAMS ARE ALSO OFFERED TO HELP
ESTABLISH YOUR BUSINESS AND ITS EXPANSION.
Eligible projects for
government
contributions:
5

Purchasing/building or extending a building


Making rental improvements


Starting a research and development project
or one of pre-marketing

Buying equipment/increasing
production capacity
Developing or marketing a new
product/process
Developing new export markets


Hiring and/or training employees
Starting a new business


Showcasing technology
Improving working capital
Source: Comparative study of construction costs in Canada, Secor, September 2010.
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TAXATION
THE PROFITS AFTER TAXES OF YOUR BUSINESS WILL THUS BE HIGHER BY
24.2% ON AVERAGE. IT IS IMPORTANT TO NOTE THAT THE TAX ON CAPITAL
HAS BEEN ABOLISHED.
INCOME TAX
Quebec has one of the lowest income tax rates in North America. Business tax rates are 28.4% while
6
the average for large American territories is 35.7% . Moreover, the business world will have a
further advantage in the coming years in Quebec with a declining tax rate of 26.9% in 2012.
Tax rate for businesses in Quebec in 2011
28,40%
Revenue portion
corresponding to rate
Balance of Revenue
71,60%
Average tax rate for businesses in the
greater American territory in 2011
35,70%
Revenue portion
corresponding to rate
Balance of Revenue
64,30%
PROPERTY TAX
Property taxes in Beauharnois-Salaberry are also 26.1% lower in comparison to large American
centres and industrialized countries. The average rate for your business in Beauharnois-Salaberry
would be $2.21 CDN/$100 valuation.
TAX CREDIT FOR R&D AND TD
Businesses in the Greater Beauharnois-Salaberry enjoy tax credit programs for scientific research
and test development that are the most generous in the world. The Quebec and Canada tax systems
will allow you to greatly reduce your costs for research and development. Therefore, the actual cost
7
for a $100 CAD expense in research and development can be reduced to $40 CAD for your company.
6
7
Source: Investissement Québec.
Source: Investissement Québec.
On average, taxes
(income and property
taxes) are lower by
27.2% in comparison
to large American
centres and
industrialized
countries.
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IMPORTANT LABOUR MARKET OF QUALIFIED
MANPOWER
YOUR BUSINESS, BY SETTING UP IN BEAUHARNOIS-SALABERRY, WILL HAVE
ACCESS TO QUALIFIED MANPOWER WITH MORE THAN 30,000 QUALIFIED
WORKERS IN THE CHEMICAL SECTOR.
8
Each year, your business could also renew its personnel from the 1,500 new graduates in the
chemical sector that enter the Quebec work force, of which 56% in the Greater BeauharnoisSalaberry area.
T.6
The following chart
represents the nine
training programs
as well as the
average number of
new graduates
annually.
TRAINING PROGRAMS
Average Number of Graduates Annually
Vocational Training
Technical Training
Water Treatment
Chemical Engineering
Chemical Processes
Laboratory Science
Environment, Health and Safety in the Work Place
University Training
Biochemistry
Chemistry
Chemical Engineering
Chemistry and Chemical Engineering – Graduate and
Post-Graduate
Total
n.a.
252
12
12
38
159
31
1 009
389
360
260
242
1 503
Source: Number of graduates in technical training, number of graduates at the university level, according to the
subject and field of studies, by type of diploma, 2003 to 2007, Ministère de l’Éducation, de la famille et des loisirs
du Québec.
RELIABLE SOURCE POWER
HAVING RELIABLE SOURCES OF ELECTRICITY AND GAS IS AN IMPORTANT
ASSET TO YOUR BUSINESS IN BEAUHARNOIS-SALABERRY
INDUSTRIAL WATER
Beauharnois-Salaberry is surrounded by water and, therefore, has direct access to industrial water
that could supply the operations of your business. Treated or untreated, the industrial water sent to
your business will respect your requirements
8
Sources: Number of graduates in technical training, by sector of training and by region, 2006, Ministère de
l’Éducation, de la famille et des loisirs du Québec; number of graduates in university training: HEC
Montréal, UQAM, École Polytechnique de Montréal, Concordia University and McGill University,
2009-2010.
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ELECTRICITY
AN IMPORTANT AMOUNT OF ELECTRICITY IS PRODUCED RIGHT HERE IN
THE REGION, THUS ENSURING A STABLE AND CONSTANT SUPPLY FOR YOUR
BUSINESS.
The fifth most important hydroelectric power installation in Quebec, the Beauharnois power plant
has 38 turbines - alternators that spread over almost one kilometre:



Power in place: 1 658 MW;
Drop height : 24 m;
2.
Area of reservoir: 233 km
GAS
The main gas pipeline of the Trans-Canada Pipeline from Western Canada crosses Greater
Beauharnois-Salaberry. Should your business require gas, Gaz Métropolitain can build a connection
for new industrial installations. However, a large number of industrial parks in the region are already
connected.
COMPATIBLE TRANSPORT INFRASTRUCTURES
BEAUHARNOIS-SALABERRY HAS TRANSPORT INFRASTRUCTURES
COMPATIBLE WITH CHEMICAL INDUSTRY BUSINESSES.
The ports of Valleyfield and Montreal, two deep-water ports, are there to answer the needs of your
business; they make the supplying of your raw materials and the exporting of your finished product
easier.


Port of Valleyfield: direct access to the port and railways from your industrial park
Port of Montreal: 55 minutes east of Beauharnois-Salaberry; accessible by road or rail
The region's multi-modal network will allow you to quick access to large North American centres to
meet your commercial needs.
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RESEARCH AND TECHNOLOGY TRANSFER
CENTRES
YOUR BUSINESS WILL HAVE ACCESS TO A VIRTUAL NETWORK OF
EXCELLENCE OF MORE THAN 200 RESEARCHERS IN MORE THAN 11
RESEARCH AND TECHNOLOGY TRANSFER CENTRES TO SUPPORT YOUR
RESEARCH AND DEVELOPMENT WORK IN THE CHEMICAL INDUSTRY.
T.7
CENTRES
Centre d'études des procédés chimiques du
Québec - Institut de chimie et de
pétrochimie
Laboratoire des
technologies électrochimiques et des
électrotechnologies d'Hydro-Québec
Centre de recherche en énergie,
plasma et électrochimie
Centre d'études des
matériaux optiques et
photoniques de l'Université
de Sherbrooke
OLEOTEK
Université
de Montréal
Université
McGill
FIELD OF WORK
Centre collégial de transfert de technologie (CCTT)
which proposes innovative solutions to small
business.
Work is mainly on improving the network
equipment with detection and analysis of
chemical products emitted when systems fail.
Material development - catalysts
and materials synthesis.
Molecular modelling and experimental
techniques to better understand the interaction
of soft matter (liquid crystals and polymers).
Centre of Applied Research and Technical
Assistance to Businesses in the Industrial
Oleo-chemistry Sector.
10 chairs on separate research subjects.
Research Centre on Advanced Materials Polymers.
Université du Québec
à Montréal - Nanoqam
Nano Materials and Power
Université Concordia
Molecular Research Centre
Institut de technologie des
procédés chimiques et de
l'environnement du CNRC
Develop new materials and processes that
produce cleaner power and consume less
energy.
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SUPPORTIVE SECTOR - RELATED ORGANIZATIONS
AND ASSOCIATIONS
TO IMPROVE COMPETITIVENESS IN BUSINESSES AND TO STIMULATE THEIR
GROWTH, MANY ORGANIZATIONS AND ASSOCIATIONS IN THE CHEMICAL
SPHERE HAVE BEEN ESTABLISHED THROUGH THE YEARS. BY BEING IN THE
GREATER BEAUHARNOIS-SALABERRY, YOUR BUSINESS COULD CALL ON
THEM AND EVEN EASILY JOIN THEM.
T.8
SUPPORTIVE SECTOR-RELATED
ORGANIZATIONS AND OBJECTIVES
ASSOCIATIONS
Association pour le développement de
l'industrie chimique
Sector news, list of producers, information on
manpower training, job offer bulletin.
Association industrielle
de l’est de Montréal
Group of 10 businesses in oil refinery, chemical,
petrochemical industries, metallurgical industry
and natural qas.
Ordre des chimistes du Québec
Professional organization whose main goal is to
ensure the public's protection.
Association canadienne des fabricants de
produits chimiques (ACFPC)
Institut canadien des produits pétroliers
Institut de chimie du Canada
Conseil canadien des ressources humaines des
industries du pétrole
Represents 75 chemical product manufacturers in
more than 200 plants in Canada, who are
responsible for 90% of the national output of
chemical products.
Association of Canadian businesses in refinery,
distribution and marketing of oil products.
Federation which includes the Canadian chemical
association, the Canadian chemical engineering
association and the Canadian chemical technology
association. Promote common scientific and
technical interests and provide services to all its
members in Canada.
Group all human resources associations of the oil
industry of Canada.
PRESENCE OF WORLD LEADERS
As a logical location for businesses in the chemical industry, Greater Beauharnois-Salaberry is home
to many businesses with an international reputation.

PPG Canada

Grace Canada

Canexus

Univar

General Dynamics

Silicate National

Eka Chimie Canada inc.

Xstrata
Do like them and many
others and locate here,
an ideal site for the
chemical industry!
10 |
T.9
C H E M I C A L
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CHEMICAL
COMPANIES–
GREATER
BEAUHARNOISSALABERRY
General Dynamics
Eka Chimie Canada inc.
Grace Canada inc.
Xstrata
Univar
Environor
Macco Organiques inc.
Plastique Rotek inc.
Les Plastiques Qualiplast inc.
PPG Canada inc
Canexus Chemicals Canada
ltee.
Produits Chimiques Regent
ltee.
Agrocentre Fertibec inc.
Silicates National
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B E A U H A R N O I S - S A L A B E R R Y
PRODUCTS MANUFACTURED
Primary chemical productsexplosives, gas for air bags
Sodium chlorate production
Inorganic chemical products-catalysts
for the oil industry
Zinc refinery and sulphuric acid
production
Chemical products distributor
Chemical products for water
treatment
Chemical products - primarypharmaceutical-preservatives
Plastic and resin products
Plastic and resin products
Organic chemical products -alkalis
and chlorine-hydrochloric acid
Inorganic chemical products
Acids, salts-inorganic chemical
products production
Fertilizer production
Inorganic chemical products-sodium
and potassium silicates
9032-1431 Québec inc.
Fertilizer production-compost
Agrocentre Belcan
Chemical fertilizer production
Finitions Mercier
Produits Performants
Générals Chemical du Canada
ltée
Air Liquide Canada inc.
Akzo Nobel Peintures ltée
Althin Biopharm inc.
Anachemia Canada inc.
Anachem ltée
Avon Canada inc.
Benjamin Moore & Cie ltée
Bérou International
Delta Pharma inc.
Dow Chemical Canada inc.
Écolab Co.
Galderma production Canada
inc.
Gestion Plastique
Management SL
Resin and synthetic rubber
production
Aluminium sulphate production
Industrial gas
Adhesives
Chemical fertilizers
Various chemical products
Various chemical products
Toiletries, cosmetics, skin care
products
Paints and coatings
New plastics
Toiletries
Polystyrene foams and adhesives
Soaps and stain removers
Beauty products
Resins and synthetic rubbers,
recycled granular plastics
CHEMICAL COMPANIES –
GREATER BEAUHARNOISSALABERRY
PRODUCTS MANUFATURED
Groupe Fruits et passions
Toiletries
Groupe Marcelle
Industries Chimiques
Duro-Kote ltée
Toiletries
Johnson & Johnson inc.
Toiletries
Laboratoire Dr. Renaud
inc.
Toiletries and beauty products
Le Groupe Avmor enr.
Les Laboratoires Buckman
du Canada ltée
Lise Watier cosmétique
inc.
L'Oréal Canada inc.
Paints and coverings
Cleaning products
Specialty products for textiles, water,
paste, papers, fertilizers
Toiletries and beauty products
Toiletries
Mapei Canada inc.
Adhesives
Peintures M.F. inc.
Paints, primers
Penzoil Quaker State
Canada inc.
Praxair Canada inc.
Produits Chimiques
Blenders inc.
Produits Chimiques
Delmar inc.
Produits Chimiques Gilco
inc.
Produits Lubri-Delta inc.
Quadra Chimie ltée
Raffineries de Napierville
inc.
Recochem inc.
Sentinel Canada, div. des
lubrifiants Sentinel
Sika Canada inc.
Sintra inc.
Solutia Canada inc.
Styrochem Canada ltée
Sun Chemical ltée.
Suncor Énergie
Univar Canada ltée
Wood Wyant inc.
Zep du Canada Div.
D'Acuity Brands inc.
Products from oil and coal
Industrial gas
Specialty products for textiles, water ,
paste , papers, fertilizers
Active ingredients for health care
Cleaning products
Products from oil and coal
Products and industrial chemical
preparations
Petrochemical products
Cleaning products
Lubricants, cleaning products
Adhesives and sealers
Asphalt mixes and road asphalt
Melamine-formaldehyde resins, of
urea-formaldehyde, styrene
anhydride maleic (SMA))
resins and synthetic rubber
Printing ink
Benzene, toluene, xylene and
derivatives, refinery
Products and industrial chemical
preparations
Resins and synthetic rubber
Soaps and stain removers
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DESIGNATED INDUSTRIAL ZONES
INDUSTRIAL ZONES, PERFECTLY SUITED TO YOUR CHEMICAL INDUSTRY
BUSINESS, ARE AVAILABLE IN THE PORT AND PERRON INDUSTRIAL PARK
AND THE BEAUHARNOIS INDUSTRIAL PARK IN BEAUHARNOIS-SALABERRY.








More than 10 million sq. ft. available
Speedy access to large North American centres
Natural gas network
Treated and non-treated industrial water, in large quantities
Easy access to roads, railroads, ports and airports
Reliable and stable electric network (25kV and 120 kV)
Telecommunication network (fibre optic) and cable distribution
Alternative power sources such as hot water, steam and hydrogen
PORT AND PERRON INDUSTRIAL PARK
BEAUHARNOIS INDUSTRIAL PARK