Chemistry industry shows significant recovery in 2010
December 8, 2010
OTTAWA – Canada’s chemistry sector experienced a solid recovery in 2010, according to a year-end survey of the industry prepared by the Chemistry Industry Association of Canada (CIAC). Sales of basic chemicals and resins totalled $21 billion in 2010 – a 14 per cent increase over 2009. Operating profits were $2.3 billion, up 73 per cent from the previous year.
“This is a good sign that our industry is on track to reach pre-recession levels of production,” says Richard Paton, president of CIAC. “But to grow beyond that, Canada needs to focus on upgrading more natural resources on Canadian soil, rather than exporting them.”
Some key figures from CIAC’s 2010 Year-End Survey of Business Conditions include:
• Export sales increased by 19 per cent in 2010, to $15.6 billion;
• Sales to U.S. markets grew 19 per cent and accounted for 73 per cent of the industry’s business outside of Canada; however,
• Sales to Canadian customers increased by only 1 per cent.
Despite solid profits, the industry remains cautious about investing in new machinery and equipment, and little new investment is projected for 2011. CIAC members expect only a two per cent increase in sales next year, based on the predicted strength of the Canadian dollar, persistent weakness in the industry’s key U.S. market and in the automotive and pulp and paper sectors, and heightened competition from the Middle East, China and India.
To read the complete report, click here.
For more information, please contact:
Chemistry Industry Association of Canada
613-237-6215 x 225