Sarnia-Lambton and CleantechMarch, 2010

Sarnia-Lambton and CleantechMarch, 2010

Sarnia-Lambton Economic Partnership

Sarnia-Lambton, Ontario, Canada

Located on the Ontario-Michigan border, at the southern tip of Lake Huron.

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

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-Lambton’s location provides effective truck transportation to key North American markets.

Transportation - highway

Photo – Trucks entering Canada at Point Edward, Sarnia-Lambton

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

Transportation – wind industry

Map Source - CN

Sarnia-Lambton’s strategic direction

Agriculture

Bio-economy

Refining and Chemicals

Develop External Energy Markets

Cleantech

Automotive

Labour Force Development

Benefit From A Manufacturing and Technically Oriented Industrial Base

Sarnia-Lambton – industrial infrastructure by sector

# of firms

Employment

All Manufacturing 189 8,253

Construction 356 2,490

Professional, Scientific & Technical Services 285 2,864

Wholesalers 190 1,609

Transportation & Warehousing 144 1,885

Administrative Support 107 2,397

Utilities 22 841

Repair & Maintenance 159 595

Waste Management 29 346

Information Services 50 501

All Sectors 1,531 21,781

Source – Sarnia-Lambton Business Directory 2008

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 Canada’s 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 world’s strongest clusters of education and

research Significant innovation and expertise in biofuels, bioproducts, agri-food technologies

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

Sarnia-Lambton’s petrochemical & refining sectorLargest 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

Sarnia-Lambton manufacturing

Doyle Boston SailmakersPoint Edward, ONSpecializing in racing and cruising sails

Waterville TG Inc.Petrolia, OntarioManufacturer of automotive weather-strips & carpet under-cushion in rubber

LANXESS Inc.Sarnia, ONManufacturer of synthetic rubber

Suncor Energy Products Inc.Sarnia, ONProduction of fuel-related products: gasoline, kerosene, jet and diesel fuels

Sarnia-Lambton manufacturing continued

NOVA Chemicals (Canada) Ltd.Corunna, ONProduction of ethylene, co-products and polyethylene

Ershigs, Inc.Sarnia, ONDesign, manufacture, fabrication, and installation of Fibreglass Reinforced Products (Photo – Ershigs)

Lamperd Less LethalSarnia, ONManufactures specialized civil defense related equipment (Photo – Lamperd Less Lethal)

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

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

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

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

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

Suncor’s ethanol facility, the largest in Canada, uses locally-grown corn

Agriculture in Sarnia-Lambton – a key economic sector continued

Photo – Plympton-Wyoming, Sarnia-Lambton

Canada’s Bioindustrial Innovation Centre

Fifty million dollar project located at the University of Western Ontario Research Park, Sarnia-Lambton Campus

Photo – Artist’s concept – Canada’s Bioindustrial Innovation Centre, The Research Park, Sarnia-Lambton Campus

Multi-million dollar development

Managed by the UWO – one of Canada’s 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

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

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

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

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

Competitive corporate taxes on manufacturing

39.0%38.8%38.6%38.1%38.1%37.7%37.4%37.2%37.1%36.8%36.3%35.9%

33.9%31.0%

28.0%25.0%

Pennsylvania

New Jersey

California

Vermont

Ohio

Gret Lakes

Illinois

U.S. Weighted AvgeNew York

Georgia

Florida

Michigan

Texas

Ontario (2009)

Ontario (2010)

Ontario (in 2012)

2009 Combined Federal and State/Provincial

Source - Ontario Ministry of Finance

Decreasing corporate income tax rates

Rates on manufacturing 2008 2009 2010 2011 2012 2013

Federal 19.5 19.0 18.0 16.5 15.0 15.0

Ontario 12.0 12.0 10.0 10.0 10.0 10.0

CombinedFederal/Provincial

31.5 31.0 28.0 26.5 25.0 25.0

Source - 2009 Ontario budget and Ontario Ministry of Finance

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. 2008

Small and Medium Sized Manufacturers(public, private

or foreign-owned)

R&D expenditure

(general)

R&D expenditure(at eligible

Ontario Research Institutes)

Gross expenditure

$ 100.00 $ 100.00

Actual after-tax expenditure

$ 47.44 $ 36.90

16.1

17.0

18.8

39.0

7.6

1.1

0.0

9.8

9.2

-9.8

-30.1Japan

Germany

US

I taly

Netherlands

France

UK

Ontario

Canada

Australia

Mexico

Ontario has a 16.1%

cost

advantage relative to USA

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 - 2009 Ontario Budget

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

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

LANXESS Bio-Industrial Park, City of Sarnia

Access power, infrastructure, marine terminal, and business services in an established industrial area

TransAlta Energy Park, City of Sarnia

Access energy and steam at TransAlta Energy Park – under construction on former Dow Canada site

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

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

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

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

Desirable locations and competitive housing costsSarnia housing prices are very affordable

Houses, condos, and apartments are available on the St. Clair River and Lake Huron waterfronts

Sarnia-Lambton’s 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

Sarnia-Lambton’s modern health care facilities

Hospital development and expansion, including new seven-storey tower

Community-based health care accessible throughout Sarnia-Lambton

State-of-the-art recreation facilities

Sarnia-Lambton’s municipalities value and invest in sports and recreation

New facilities throughout the area provide activities for all ages

Third Party Endorsements

North American "Micro-City of the FutureTop five best foreign direct investment strategy – City of Sarnia"fDi magazine", 2009 / 2010

Most Livable City in OntarioCity of SarniaPembina Institute, August, 2007

North American "Micro-City of the Future“3rd - City of Sarnia"fDi magazine", April/May, 2007

Top Ten Canadian Economic Development GroupsSarnia-Lambton Economic Partnership"Site Selection" Magazine, September 2008

Top Ten Canadian Economic Development GroupsSarnia-Lambton Economic Partnership"Site Selection" Magazine, September, 2007

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 Partnership265 Front Street North, Suite 107Sarnia ON Canada N7T 7X1519-332-1820 Toll free NA 1-800-972-7642www.sarnialambton.on.cainfo@sarnialambton.on.ca