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Sarnia-Lambton and Cleantech March, 2010 Sarnia-Lambton Economic Partnership.

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Presentation on theme: "Sarnia-Lambton and Cleantech March, 2010 Sarnia-Lambton Economic Partnership."— Presentation transcript:

1 Sarnia-Lambton and Cleantech March, 2010 Sarnia-Lambton Economic Partnership

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3 Sarnia-Lambton, Ontario, Canada Located on the Ontario- Michigan border, at the southern tip of Lake Huron.

4 Sarnia-Lambton is comprised of eleven municipalities, which make up the County of Lambton. The largest and most well known municipality is the City of Sarnia. County population 129,000 Labour force 62,000 Labour force within 60 mile radius, 315,700 Estimated unemployment rate 9% Michigan USA Sarnia-Lambton s municipalities

5 Sarnia-Lambton is located at the major commercial border crossing of Sarnia/Point Edward Ontario & Port Huron Michigan. Dedicated car and truck lanes for Free and Secure Trade (F.A.S.T.) and Nexus programs. Sarnia-Lambtons location provides effective truck transportation to key North American markets. Transportation - highway Photo – Trucks entering Canada at Point Edward, Sarnia- Lambton

6 CN rail tunnel at Sarnia links Ontario and Michigan, and accommodates double-stacked rail cars. Sarnia-Lambton is located on the Great Lakes. Opportunities exist for industries requiring water transportation. Transportation – water and rail Photo – service vehicle enters CN rail tunnel, Sarnia Photo – ship at Sydney Smith Dock, Sarnia

7 Transportation – wind industry Map Source - CN

8 Sarnia-Lambton s strategic direction Agriculture Bio-economy Refining and Chemicals Develop External Energy Markets Cleantech Automotive Labour Force Development

9 Benefit From A Manufacturing and Technically Oriented Industrial Base Sarnia-Lambton – industrial infrastructure by sector # of firms Employment All Manufacturing1898,253 Construction3562,490 Professional, Scientific & Technical Services2852,864 Wholesalers1901,609 Transportation & Warehousing1441,885 Administrative Support1072,397 Utilities22841 Repair & Maintenance Waste Management29346 Information Services50501 All Sectors1,53121,781 Source – Sarnia-Lambton Business Directory 2008

10 Sarnia-Lambton - building on regional strengths Automotive and manufacturing The leading automotive producing region in North America with access to major markets Manufacturers such as Magna and Woodbridge exploring bio-based parts Chemicals, materials, energy $6 billion in traditional chemical shipments from Sarnia alone, plus Canadas largest ethanol plant, with potential for much more Pipelines from Western/Eastern Canada, USA Agriculture, forestry, other resources Strength in soybeans, corn, wheat, etc. Diversified resources, potential energy crops Significant research & development Over 20 universities – one of the worlds strongest clusters of education and research Significant innovation and expertise in biofuels, bioproducts, agri-food technologies

11 Strong regional approach Sustainable Chemistry Alliance Regional Wind Supply Chain Partnership Initiative – London, Kitchener-Waterloo, Guelph, Chatham-Kent Bluewater Sustainability Initiative Sarnia-Lambton Environmental Association Southwestern Ontario Bioproducts Innovation Network Ontario Bioauto Council Forestry Sector

12 Sarnia-Lambton s petrochemical & refining sector Largest cluster of refineries and petrochemical plants in Canada, including: Air Products BP Canada Cabot Canada INVISTA Imperial Oil LANXESS Nova Chemicals Praxair Shell Canada Suncor Energy Terra Nitrogen Photo – Esso (Imperial Oil), Sarnia

13 Sarnia-Lambton manufacturing Doyle Boston Sailmakers Point Edward, ON Specializing in racing and cruising sails Waterville TG Inc. Petrolia, Ontario Manufacturer of automotive weather- strips & carpet under- cushion in rubber LANXESS Inc. Sarnia, ON Manufacturer of synthetic rubber Suncor Energy Products Inc. Sarnia, ON Production of fuel- related products: gasoline, kerosene, jet and diesel fuels

14 Sarnia-Lambton manufacturing continued NOVA Chemicals (Canada) Ltd. Corunna, ON Production of ethylene, co-products and polyethylene Ershigs, Inc. Sarnia, ON Design, manufacture, fabrication, and installation of Fibreglass Reinforced Products (Photo – Ershigs) Lamperd Less Lethal Sarnia, ON Manufactures specialized civil defense related equipment (Photo – Lamperd Less Lethal)

15 Sarnia-Lambton s Cleantech Manufacturing Infrastructure Over 50 machining and fabrication firms Over 30 engineering, process control and technical services firms Large craning and transportation moving equipment – Sterling, Cooper Access to large lay down areas Rail car repair services

16 Sarnia-Lambton s cleantech manufacturing infrastructure continued New wet lab and bioprocessing facilities Scale up experience, competence, and facilities from bench level to commercial plant Hydrogen and other gaseous pipelines and associated infrastructure Blue Water Power – Highly progressive local utility Strong community support for new development

17 Sarnia-Lambton s growing energy infrastructure Lambton Generating Station TransAlta Energy Corporation Greenfield Energy St. Clair Energy Centre Dawn Township natural gas storage complex Enbridge / First Solar – Solar Farm Wind - Sky Generation, Forest Co-op, IPC, Suncor Pipeline Infrastructure

18 Agriculture in Sarnia-Lambton – a key economic sector Annual farm revenues of $370 million Second largest economic sector Traditional focus – commodity crops (soy beans, corn and wheat) and livestock Largest Ontario region for soy bean production Proactive effort to investigate opportunities adding value to the sector

19 Over 500,000 acres of cultivated land Leading Ontario producer of soybean, wheat and corn One-day drive to 1.6 billion bushels of corn and 621 million bushels of soybean Suncors ethanol facility, the largest in Canada, uses locally-grown corn Agriculture in Sarnia-Lambton – a key economic sector continued Photo – Plympton-Wyoming, Sarnia- Lambton

20 Canada s Bioindustrial Innovation Centre Fifty million dollar project located at the University of Western Ontario Research Park, Sarnia-Lambton Campus Photo – Artists concept – Canadas Bioindustrial Innovation Centre, The Research Park, Sarnia-Lambton Campus

21 Multi-million dollar development Managed by the UWO – one of Canadas top ten R&D universities Development complementary to the Sarnia Research & Business Park Focus on commercialization of alternative energy and bio processes Very cost effective option for research and development The Research Park, Sarnia-Lambton Virtually free Virtual Offices Development complementary to the Sarnia Research & Business Park

22 Sarnia-Lambton s available labour force Population 129,000 Labour force 62,000 Within 60 mile radius, 315,700 Estimated unemployment rate 9% Low employee turnover and abstention Construction safety record 25 times better than Ontario average Sarnia Lambton will provide recruitment assistance Preliminary labour pool assessment Locations for job fair

23 High quality of life = high productivity of workforce Less lateness and absenteeism Easy commuting distances and times Less severe weather (Lake Huron effect) Less stress because of more affordable housing choices and recreational amenities Smaller schools without big city problems Little CAW presence and good labour / management relations across the County

24 Regional Educational Facilities Ontario, Canada: Lambton College University of Western Ontario Fanshawe College Ridgetown College (branch campus University of Guelph) University of Windsor University of Waterloo Michigan, USA Baker College St. Clair College Wayne State University

25 Sarnia-Lambton s focus on Cleantech education and research Lambton College – Alternative Energy Technology and Process Technology Programs University of Western Ontario – Programs in chemical and biochemical engineering, and sustainable energy technology, power engineering, materials science

26 Competitive corporate taxes on manufacturing 2009 Combined Federal and State/Provincial Source - Ontario Ministry of Finance

27 Decreasing corporate income tax rates Rates on manufacturing Federal Ontario Combined Federal/ Provincial Source Ontario budget and Ontario Ministry of Finance

28 Ontario s R and D Cost Advantage Cost Advantage (%) After-Tax Cost of $100 Expenditure Sources - Ontario Ministry of Finance and Canada Revenue Agency, 2009 Sources - KPMG and Ontario Ministry of Economic Development and Trade, Dec Small and Medium Sized Manufacturers (public, private or foreign- owned) R&D expenditure (general) R&D expenditure (at eligible Ontario Research Institutes) Gross expenditure $ Actual after- tax expenditure $ 47.44$ Ontario has a 16.1% cost advantage relative to USA

29 Ontario s Comprehensive Tax Reform Package Beginning July 1, 2010, Ontario will help businesses become more competitive by reducing business taxes, such as: Cutting the Corporate Income Tax (CIT) rate for small businesses by 18% Cutting the general CIT rate by 14.3%, with a further by 16.7% reduction in over the next three years Cutting the Ontario manufacturing and processing rate by 16.7% (which includes businesses like farming, fishing, mining, and logging) Exempting more small and medium-sized business from the Corporate Minimum Tax and cutting the rate for large businesses by 32.5% Eliminating the small business surtax (Ontario will be the only jurisdiction in Canada to end this barrier to growing small businesses) Source Ontario Budget

30 Sarnia-Lambton s unique training opportunities Industrial Training – Sarnia-Lambton Industrial Education Co-operative trains people in all work environments to implement and sustain Best Practices performance improvement processes. Twenty-three Sarnia- Lambton member industrial companies Environment – Sarnia-Lambton Environmental Association – through collective commitment to ongoing environmental improvements positive and measured results are being realized locally. Twenty Sarnia- Lambton member industrial companies

31 Affordable serviced industrial land Some of Sarnia-Lambton s business and industrial parks …

32 LANXESS Bio-Industrial Park, City of Sarnia Access power, infrastructure, marine terminal, and business services in an established industrial area

33 TransAlta Energy Park, City of Sarnia Access energy and steam at TransAlta Energy Park – under construction on former Dow Canada site

34 Sarnia-Lambton – private industrial land inventory Example – Anderson-Robbins site 291 acres (118 hectares) regular rectangular Immediately accessible to Highway 40 – 8 miles (12.9 km.) to Highway 402 Main CN rail runs along western site boundary Stable clay-based soil Zoned General Industrial (M2.1). Present use agricultural USA HWY 402

35 Expeditious construction costs & building process in Sarnia-Lambton 95% of cases have no development charges Minimal fees and charges Expeditious development approval process – several weeks for planning & permitting process, assuming zoning is in place

36 Ontario s Advanced Manufacturing Incentives Next Generation of Jobs Fund Can$ 1.15 billion fund - 15% grant Qualification criteria Can$ 25 million capex and / or 100 jobs within 5 years Advanced Manufacturing Investment Strategy (AMIS) Can$ 500 million fund 30% of capex, interest-free loan for 5 years Qualification criteria: Can$ 10 million capex and / or 50 jobs within 5 years. Undertake investment in one of the priority investment target areas

37 Canada s federal incentives Canadian federal incentives Scientific Research and Experimental Development (SR&ED) – R&D tax credit Best in the world IRAP – Industrial Research Assistance Assist in Hiring Technical Staff Canadian financing partners Canadian banks are now the strongest in the world They are interested in investing in renewable energy We can make appropriate introductions

38 Desirable locations and competitive housing costs Sarnia housing prices are very affordable Houses, condos, and apartments are available on the St. Clair River and Lake Huron waterfronts Sarnia-Lambtons picturesque rural areas provide room for hobby farms as well as large agricultural operations Sample City of Sarnia housing prices: Detached bungalow – $149,900 Executive detached two storey – $280,000 Standard two storey – $139,000 Standard townhouse – $123,000 Senior executive - $413,000 Standard condominium apartment - $179,000 Luxury condominium apartment - $350,000 Source – Survey of Canadian House Prices, second quarter, 2009, Royal LePage Photo – waterfront condominiums, Village of Point Edward

39 Sarnia-Lambton s modern health care facilities Hospital development and expansion, including new seven-storey tower Community-based health care accessible throughout Sarnia-Lambton

40 State-of-the-art recreation facilities Sarnia-Lambtons municipalities value and invest in sports and recreation New facilities throughout the area provide activities for all ages

41 Third Party Endorsements North American "Micro-City of the Future Top five best foreign direct investment strategy – City of Sarnia "fDi magazine", 2009 / 2010 Most Livable City in Ontario City of Sarnia Pembina Institute, August, 2007 North American "Micro-City of the Future 3rd - City of Sarnia "fDi magazine", April/May, 2007 Top Ten Canadian Economic Development Groups Sarnia-Lambton Economic Partnership "Site Selection" Magazine, September 2008 Top Ten Canadian Economic Development Groups Sarnia-Lambton Economic Partnership "Site Selection" Magazine, September, 2007

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43 The Sarnia-Lambton Approach We take a business approach to development We take an innovative approach to many issues, such as temporary head office space We are in for the long-term relationship We welcome you to our community Sarnia-Lambton Economic Partnership 265 Front Street North, Suite 107 Sarnia ON Canada N7T 7X Toll free NA


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