CANADA ECONOMICS

AVIATION

The Globe and Mail. 2018-04-30. Bombardier’s Moscow office raided in corruption probe

Documents examined by The Globe suggest the focus of the investigation is a Britain-based shell company called Multiserv Overseas Ltd.

Searches, summons for general-director of joint venture with Russian Railways part of police investigation into company’s relationships with ‘Russian partners’

Russian police have raided the Moscow offices of a Bombardier Inc. joint venture as part of an investigation into the Montreal-based transportation giant’s business relationships in the country, according to documents and video footage reviewed by The Globe and Mail.

The searches were conducted as part of a criminal probe into allegations of “corruption during procurement of railway equipment,” according to legal documents. The general-director of the Bombardier-controlled company has received at least five police summons since the probe began in the fall, documents from Russia’s Interior Ministry and the office of the Moscow region’s Transport Prosecutor show.

The legal troubles in Moscow were not disclosed to Bombardier shareholders in the company’s 2017 annual report, which was published in February, 2018.

Ludovic Saint-Pol, communications manager for the rail control division of Bombardier Transportation, acknowledged the legal action. Mr. saint-Pol said “the visit conducted on our premises involved a unit of the Moscow Region Customs Office.” He did not comment further on the matter.

The Globe initially approached Bombardier Transportation more than three weeks ago with questions about the police action in Russia. A spokesman said at the time that the company had no comment on the matter.

The Globe contacted Bombardier again on April 24 to give the company another opportunity to reply, in light of the emergence of the videos and legal documentation, which were provided by railway-industry sources in Russia. The company again had no comment.

In the videos, Russian police, wearing masks and carrying assault rifles, can be seen entering an office while employees of the company stand away from their desks. A former employee identified the building as the north Moscow headquarters of Bombardier Transportation (Signal), a joint venture formed between Bombardier Transportation and the state-owned Russian Railways.

Bombardier owns 60 per cent of Bombardier Transportation (Signal), which was established in 1996, while Russian Railways owns 36 per cent. According to company documents, the remaining 4 per cent is controlled by a quartet of influential railway-industry executives that Bombardier refers to in its internal memos simply as the “Russian Partners.”

Bombardier’s relationships with those Russian partners − associates of former Russian Railways boss Vladimir Yakunin − have come under increasing scrutiny and led to international legal trouble for the Canadian company.

While it’s unclear from the videos what the armed police are looking for, documents examined by The Globe suggest the focus of the investigation is a Britainbased shell company called Multiserv Overseas Ltd. The shell company served as a profit-reaping intermediary on more than a hundred transactions involving the sale of Bombardier-made computerized rail-control systems, known as EbiLock 950s, into the Russian market.

Bombardier’s relationship with Multiserv Overseas was first revealed in an investigation by The Globe that was published in December, 2016. The Globe found that, while the company had a constantly shifting ownership structure − involving tax havens such as Belize, Panama and the Seychelles − Multiserv Overseas was founded by Yuriy Obodovskiy, one of Bombardier’s “Russian Partners.” The company’s ultimate beneficiary is another of the “Partners,” Alexey Krapivin.

The Russian police documents show that Andrey Golubev, the general manager of Bombardier Transportation (Signal), was first summoned by the anti-corruption office of Russia’s Interior Ministry to answer questions on Oct. 11 of last year. He was instructed to bring his passport when he reported to the Interior Ministry office.

Two Russian railway industry sources, speaking on condition of anonymity, said the videos showing the police raid of Bombardier Transportation (Signal) were taken in October, around the same time that Mr. Golubev was first summoned for questioning.

Mr. Golubev was summoned on three more occasions over the following six weeks, this time by the office of Moscow’s Transport Prosecutor. A Nov. 7 summons also includes some of the questions that prosecutors were seeking answers to.

The document shows that Mr. Golubev would be expected to explain how Bombardier Transportation (Signal) decided on Multiserv Overseas as a partner, who was involved in the decision-making process and how prices were set for the sale of Bombardier equipment via Multiserv Overseas.

The prosecutor also asked Mr. Golubev why his company didn’t just buy EbiLock 950s directly from the producer, Bombardier Transportation Sweden.

“Why didn’t you choose Bombardier Transportation Sweden AB, which is simultaneously the manufacturer of the … EbiLock 950 system, and the cofounder of Bombardier Transportation (Signal)?” reads the Nov. 7 summons, which is signed by Shamil Shakirov, the deputy transport prosecutor for the Moscow region.

Mr. Golubev received a fifth request for information, this time from a different division of the Interior Ministry, on March 6, 2018. Russian sources say a second police raid of the Bombardier Transportation (Signal) offices occurred around the same time.

Bombardier’s relationship with Multiserv Overseas is also at the centre of continuing legal action in Sweden, where the National Anti-Corruption Unit last year opened a wide-ranging investigation into contracts won in Russia and other parts of former Soviet Union by Bombardier’s local arm, the Stockholm-based Bombardier Transportation Sweden.

Swedish prosecutors are currently appealing last fall’s acquittal of a Russian national who was charged with “aggravated bribery” in connection with a contract that Bombardier won in Azerbaijan − a deal that netted Multiserv Overseas US$84-million in profit, while buying signalling equipment from Bombardier Transportation Sweden and selling it on to Bombardier Transportation (Signal). Four other Swedish nationals have been named as suspects in the same case.

Internal Bombardier documents entered into Swedish court show that Multiserv Overseas was one in a network of companies controlled by the “Partners” that served as intermediaries on Bombardier projects in Russia, Mongolia, Kazakhstan, Turkmenistan and Azerbaijan.

The World Bank, which funded the US$380-million project to install modern rail signalling systems in Azerbaijan, is conducting an audit of the deal. If Bombardier is found to have engaged in any corruption, the company could be barred from future World Bank contracts. That would be a devastating blow for Bombardier’s rail arm, which has a growth strategy heavily reliant on winning infrastructure contracts in the developing world.

Last summer, Bombardier announced it was conducting its own internal review of how the company operated in Russia and the former Soviet Union. Several employees in Sweden and Russia were suspended pending the outcome of the review, which Mr. Saint-Pol said was continuing.

INTERNATIONAL TRADE

The Globe and Mail. 30 Apr 2018. US. CHINA. China, the United States and the high stakes ahead. A corporate lawyer-turned-consultant with a long history of public service and social engagement
WILLIAM A. MACDONALD

After six centuries of expanding freedom and technological development since the Renaissance, the West has weakened and provoked counter-forces both within and beyond its borders. As it relinquishes its role as leader of an inclusive world order, drastic changes will test every country in the years ahead.

The world we have known since 1945 focused on fairness, peace and prosperity, supported by good jobs and economic security. By 2000, these ideals had given way to lesser visions, such as shareholder value and regime change. This consumer-driven society brings different policies and political battles to the fore as the effectiveness of the old policies declines. Postwar growth seems to have peaked, as have the central banks, free markets and government-sponsored social security programs it fostered. Only technology remains a big growth story; the rest will continue, but without the same potential for expansion.

The year 2018 resembles 1945 in many important respects. In 1945, after 30 hellish years of two world wars, a global depression, a Holocaust and a Europe that almost committed suicide, the U.S.-led West advanced new visions, ideas and projects powerful enough to get a broad global consensus on the direction to follow, though without support from China, Russia and Iran. This momentum lasted for the rest of the 20th century and transformed the world – mostly for the better.

We need a comparable consensus now, though it must come from determination and skill, not war and economic decline.

Today’s rising power is China. Over its long history it created an impressive civilization, and it is emerging as a great country again. It has an important contribution to make as a world leader, though it still lags behind Western countries because of its limits on freedom and mutual-accommodation. Its social contract with its citizens is vulnerable because of its economy, which in turn is dependent on the global economy. Still, over the past few decades, China has built on the strengths of its historic achievements, bolstered by access to the U.S.-led economic order.

Over these same few years, U.S. achievements have been undermined by overreach and underreach. The United States started withdrawing from overreach under Barack Obama but has since moved into disruptive disarray under President Donald Trump. He has an uncertain political future, and his goals are measured in hours, not decades. By contrast, China’s President Xi Jinping has a long view and a seemingly assured political future.

We need a multicountry approach led by the United States and China if we are to attain a world worth living in. The basics of the postwar Western approach still apply: Broaden the inclusive order within and between countries, and contain what cannot be included. Our first task is to find the political will and consensus for an orderly path forward in our closely connected world. It’s not possible for any country today to go it alone – mutual– accommodation is essential.

The West needs to focus on strengths, not weaknesses, and finding a renewed global order for all. Its strengths in politics, economics, resources and values are unmatched, as are its military power, alliances, sense of inclusiveness and capacity for change. Today, no other countries, ideas or civilizations can threaten the West. We are only threatened by our own inherent contradictions.

China and a deeply divided United States will make the decisive choices of our era. Can they find a grand plan that will create a peaceful, prosperous and inclusive global order that works? Ideally, they will discover a way to reduce terrorism, contain broken states and civil wars, abolish walls between countries and establish safe places for refugees.

Mr. Xi seems to understand elements of the situation and believes he can look out for China, the Chinese Communist Party and himself in a reshaped global order. The West is still stronger than China, but its advantages are being undermined by centrifugal forces and populism. It must recognize that its strengths rest on five institutions: the rule of law; democratic ways; free markets; a robust media; and fear-free universities. The United States is floundering in Mr. Trump’s “no man’s land” as he bullies his enemies, threatens to withdraw from trade agreements and international deals, builds walls, blusters and contradicts himself, all in the name of making America great again.

Faced with this crisis, the West would be wise to draw on Canada’s mutual-accommodating ways. We do what it takes to make things work, and every outcome is custom-made.

THE GLOBE AND MAIL. BLOOMBERG. APRIL 30, 2018. US. CHINA. Trump keeps allies guessing on steel tariffs as deadline looms
ANDREW MAYEDA

President Donald Trump hasn’t decided whether to extend relief for allied nations from U.S. steel and aluminum tariffs, creating uncertainty in global metals markets with temporary exemptions set to expire in less than 24 hours.

“The president has not made any decision yet,” Treasury Secretary Steven Mnuchin told Fox Business Network in an interview that aired Monday, when asked about extending exemptions to trading partners.

“We’ve been having lots of discussions internally, we’ve been having lots of discussions with our counterparts,” he said, adding: “We’re addressing these issues real time.”

Mnuchin’s comments were similar to those of Commerce Secretary Wilbur Ross, who said late Saturday that the White House will announce its decision on tariffs right before the May 1 deadline.

Trump last month imposed 25 percent tariffs on steel imports and 10 percent on aluminum. But he gave temporary reprieves to Australia, Argentina, Brazil, Canada, the European Union, Mexico and South Korea, and directed U.S. Trade Representative Robert Lighthizer to handle negotiations with countries seeking exemptions.

So far, South Korea is the only nation to be spared from the duties, though nations including France and Germany have been pushing for the EU to be excluded.

“The president gave us time to address these issues and the president is going to make a decision,” Mnuchin said. “I expect that there will be a decision quickly.”

Harley, bourbon

Trump’s embrace of tariffs this year has roiled financial markets and sparked fears of a trade war that could undermine the broadest global upswing in years. The EU has threatened to retaliate with duties on iconic American goods such as Harley-Davidson motorcycles and Kentucky bourbon.

The steel decision comes days before Mnuchin and other senior members of Trump’s cabinet travel to China in search of a deal that would head off a brewing trade dispute between the world’s two-biggest economies. Trump has threatened to slap tariffs on as much as $150 billion in Chinese imports, while Beijing has vowed to respond with duties on everything from American soybeans to airplanes.

“We’re looking to have a very frank discussion on trade, on the issues of the trade imbalance,” Mnuchin said. “President Trump has been very clear for the last year that he’s very focused on the trade deficit, and we’re looking to correct that.”

Deficit cut

The U.S. had a $337 billion trade deficit in goods and services with China last year. Trump has asked China to cut the gap by $100 billion and open up the Asian nation’s markets to American products such as cars. But Chinese officials will refuse to discuss the $100-billion demand at talks in Beijing this week, the New York Times reported, citing unidentified people.

In exchange for a permanent exemption from the metals tariffs, the Trump administration is pushing countries to accept quotas on the amount of steel and aluminum they export to the U.S. South Korea accepted a quota of 70 percent of the average of its steel exports to the U.S. between 2015 and 2017, which can come in tariff-free.

The U.S. Aluminum Association last week sent a letter asking Trump to grant exemptions to all “responsible” trade partners. But over the weekend, Century Aluminum Co. Chief Executive Officer Mike Bless, leading the second-largest U.S. aluminum producer, echoed the Commerce Department’s original recommendations to the president that said all imports must be subject to either quotas or tariffs.

The steel threat has complicated talks with Canada and Mexico on a revised North American Free Trade Agreement. Trump has dangled a permanent exemption as incentive to reach a tentative deal. But both Mexico and Canada have resisted the idea of a quota.

“There is no justification whatsoever for tariffs or quotas on Canadian steel and aluminum as a national security consideration,” Canadian Foreign Minster Chrystia Freeland said Friday. The U.S. imposed the tariffs after concluding foreign shipments imperil its security.

Mexican Economy Minister Ildefonso Guajardo said “a quota on steel would not be the best way to go.”

The uncertainty over steel tariffs isn’t just causing unease among allies. The U.S. Commerce Department is wrestling with a flood of requests from companies to exclude products from the steel and aluminum duties, creating a backlog that’s sparked calls for action from lawmakers and trade groups.

The Commerce Department says it’s already boosted staff, and wants approval from Congress to use more of its budgeted funds to help solve the problem. Some 3,500 exclusion requests have yet to be reviewed, while about 550 had been processed as of April 27, according to the department. No decision on a request can be made until it’s been reviewed and posted online for 30 days for any objections.

REUTERS. APRIL 30, 2018. US. CHINA. U.S. treasury chief: 'Cautiously optimistic' on China trade talks

WASHINGTON (Reuters) - U.S. and Chinese officials will hold highly anticipated trade talks in China on Thursday and Friday, U.S. Treasury Secretary Steven Mnuchin told Fox Business Network, saying he was “cautiously optimistic” about the meeting.

Mnuchin said in an interview that aired on Monday that American officials planned to raise intellectual property rights, joint technology and joint ventures with Chinese officials.

“We’re looking to have a very frank discussion on trade, on the issues of the trade imbalance,” he said ahead of remarks due later on Monday at a conference in Beverly Hills, California.

China has said it is open to trade negotiations with the United States after U.S. President Donald Trump proposed imposing tariffs on $50 billion in Chinese exports and threatened additional tariffs of $100 billion. China, in response, said it will impose its own tariffs on American products.

Asked about concerns over possible retaliatory measures by China, Mnuchin said: “It’s not a worry of mine,” adding that Trump was focused on “free and fair and reciprocal trade.”

The U.S. Treasury Secretary will be joined on the high-stakes trip by U.S. Trade Representative Robert Lighthizer, White House trade adviser Peter Navarro and White House economic adviser Larry Kudlow.

Chinese Vice Premier Liu He will be part of this week’s meeting, Mnuchin told the network.

Reporting by Susan Heavey and Makini Brice; Editing by Chizu Nomiyama and Jeffrey Benkoe

REUTERS. APRIL 30, 2018. US. CHINA. Exclusive: U.S. Treasury meets business groups on Chinese investment bill - sources
Ginger Gibson, Diane Bartz

WASHINGTON (Reuters) - U.S. Treasury officials are meeting with about 10 industry groups on Monday to discuss the latest draft of legislation that would tighten scrutiny of foreign investment in order to limit Chinese efforts to acquire sophisticated U.S. technology, three sources familiar with the meeting said.

The Treasury Department supports the bill, which is now in the Senate and a companion measure in the U.S. House of Representatives, that would broaden the reach of the inter-agency Committee on Foreign Investment in the United States (CFIUS).

Corporate America has taken a keen interest in the bill because it would give CFIUS the power to further restrict Chinese investment in U.S. companies. It could also potentially lead the Chinese to retaliate and restrict U.S. company access to the world’s second-largest economy.

Tightening the CFIUS process is one of several efforts supported by the Trump administration, including tariffs on steel and aluminum, to establish a more protectionist stance in an effort to tamp down Chinese imports while raising the regulatory bar on what deals get approved.

Attendees include the most powerful U.S. business lobbying group, the Chamber of Commerce, a source familiar with the situation said.

A Treasury spokesperson declined to comment on the meeting, adding that they are “prohibited by statute from publicly disclosing information filed with CFIUS.”

Aside from the bill itself, the meeting will likely discuss the possibly of attaching it to the National Defense Appropriations Act (NDAA), legislation that is passed annually to fund U.S. defense needs, two of the sources said. The NDAA has been voted into law for 55 consecutive years, and will likely pass even with the midterm elections on the horizon.

A draft of the bill to be discussed in the meeting, seen by Reuters, would eliminate a measure which some tech companies complained would force them to go to CFIUS to get approval for technology sales if they involved intellectual property licensing and support.

The draft also spells out that an investment fund can be passive, and not subject to CFIUS oversight even if there are foreign investors, as long as investment decisions are made by Americans and the decision on hiring those Americans is also made by Americans.

Investment funds had complained that under an older version of the bill they could be subject to CFIUS if they managed Chinese money and wanted to invest in certain companies with high end technology.

The draft also defines passive investment as “direct or indirect,” but strikes a measure that says passive investors may be subject to a CFIUS review if they have access to non-technical information. Any access to technical information would remain subject to CFIUS oversight.

Treasury oversees CFIUS, whose remit is all foreign investments into the United States, including equity investments.

Under pressure from tech companies and others, the bill has already undergone a number of changes to soften its approach.

Negotiators in the administration, on Capitol Hill and working for the investment and high tech community are on their fourth version of a bill on CFIUS. The bill previously underwent at least one proposed revision that would seek to narrow its scope.

Reporting by Ginger Gibson and Diane Bartz; Writing by Chris Sanders; Editing by Nick Zieminski

ENERGY

REUTERS. APRIL 30, 2018. OPEC April oil output hits year low on Venezuela slide: Reuters survey
Alex Lawler

LONDON (Reuters) - OPEC oil output fell in April to a one-year low due to declining production in Venezuela and lower shipments from African producers, a Reuters survey found, sending compliance with a supply-cutting deal to another record.

The Organization of the Petroleum Exporting Countries pumped 32.12 million barrels per day this month, the survey found, down 70,000 bpd from March. The April total is the lowest since April 2017, according to Reuters surveys.

OPEC is reducing output by about 1.2 million bpd as part of a deal with Russia and other non-OPEC producers to get rid of excess supply. The pact started in January 2017 and runs until the end of 2018.

Adherence by producers in the deal rose to 162 percent of agreed cuts from a revised 161 percent in March, the survey found. There was, again, no sign that Saudi Arabia or other big producers had boosted output significantly to cash in on higher prices or to compensate for the Venezuelan decline.

“Thus, higher U.S. oil production is needed to plug the supply gap,” said Carsten Fritsch, analyst at Commerzbank, referring to the lack of extra barrels from other OPEC members to compensate for declines.

Oil has topped $75 a barrel LCOc1 this year for the first time since 2014, and was trading near $74 on Monday. Still, OPEC says supply restraints should be maintained to ensure the end of a glut that had built up since 2014.

In April, the biggest decrease in supply came from Venezuela, where the oil industry is starved of funds because of economic crisis. Output dropped to 1.50 million bpd in April, the survey found, a new long-term low.

Production in Angola, where natural declines at some fields are weighing on output, slipped and the country is pumping over 260,000 bpd less than its OPEC target. Nigerian exports, which have risen this year, slipped in April.

Production in Libya, which remains unstable due to unrest, edged lower after a suspected act of sabotage briefly stopped flows from Waha Oil Co.’s fields, industry sources said.

OPEC’s two largest producers, Saudi Arabia and Iraq, pumped slightly more but not enough to offset the declines elsewhere.

Output in top producer Saudi Arabia edged up due to higher exports, sources in the survey said, but remained below the kingdom’s OPEC target.

Iraq, the second-largest, pumped more because of an increase in exports from the south, the outlet for most of the country’s crude, despite maintenance at a loading terminal.

Output in the country holding the OPEC presidency this year, the United Arab Emirates, remained steady in April as it continues to show higher compliance than in 2017, sources close to the matter said. Kuwait also maintained full compliance.

Nigeria and Libya were originally exempt from cutting supply because their output had been curbed by conflict and unrest. For 2018, both told OPEC that output would not exceed 2017 levels.

OPEC has an implied production target for 2018 of 32.73 million bpd, based on cutbacks detailed in late 2016 and taking into account changes of membership since, plus Nigeria and Libya’s expectations of 2018 output.

According to the survey, OPEC pumped about 610,000 bpd below this implied target in April, not least because of the involuntary declines in Venezuela and Angola.

The Reuters survey is based on shipping data provided by external sources, Thomson Reuters flows data and information provided by sources at oil companies, OPEC and consulting firms.

Additional reporting by Rania El Gamal in Dubai; Editing by David Evans

PRODUCTION SUPPORT

Canada Economic Development for Quebec Regions. April 30, 2018. Financial support for five Saguenay businesses to support their growth and market development. Government of Canada awards more than $2.5 million to PCP Aluminium, Microbrasserie du Saguenay, Industries DODEC, Noriske and Formothane Saguenay

Saguenay, Quebec – Businesses need to be able to rely on adequate resources to create and commercialize innovative products. In 2017, the Government of Canada adopted an ambitious plan to support innovative Canadian enterprises. As a true economic driver, innovation is essential to Canada’s success in that it generates growth that benefits businesses and communities.

Five Saguenay businesses — PCP Aluminium (6482066 Qc Inc.), Microbrasserie du Saguenay (9216-3146 Qc Inc.) [website in French only], Industries DODEC Inc., Noriske [formerly known as Équipement Saguenay (1982) Ltée] and Formothane Saguenay Inc. — will be able to rely on financial assistance from the Government of Canada to improve their production capacity, implement commercialization strategies and acquire strategic equipment. These projects will generate total investments of more than $7.6 million and create 38 new jobs in the area.

The repayable contributions totalling $2,654,172 were announced today by the Honourable Diane Lebouthillier, Minister of National Revenue, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for CED.

The funding awarded by the Government of Canada through CED’s Quebec Economic Development Program will help the recipient businesses achieve their growth objectives.

Quotes

“Quebec and Canadian entrepreneurs are key players in our economy. To ensure the growth of their enterprises and foster the creation of good, well-paying jobs, they have to be able to rely on the best equipment and easily access international markets. I am very pleased about the assistance granted today to five dynamic businesses that will be able to contribute to economic growth in their region and in Canada.”

The Honourable Diane Lebouthillier, Minister of National Revenue

“As the Minister of Innovation, Science and Economic Development, my goal is to help businesses grow and innovate so that they can become more competitive in the market and create good-quality jobs and wealth for Canadians. That is why we are supporting these five enterprises, whose successes benefit the region and the Canadian economy overall.”

The Honourable Navdeep Bains, Minister responsible for CED

Quick facts

• CED is one of the six regional development agencies under the responsibility of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development.
• For more information on CED’s key directions until 2021, consult Strategic Plan 2021 or visit www.dec-ced.gc.ca.
• Budget 2018 proposes to provide an additional $511 million in funding over five years on a cash basis, starting in 2018–2019, for the regional development agencies to support the Innovation and Skills Plan across all regions of Canada.
• Of the $511 million, $99 million will be allocated to CED, of which $22 million will go toward supporting the new Women Entrepreneurship Strategy.

Backgrounder

Five Saguenay businesses — PCP Aluminium (6482066 Qc Inc.), Microbrasserie du Saguenay (9216-3146 Qc Inc.) [website in French only], Industries DODEC Inc., Noriske [formerly known as Équipement Saguenay (1982) Ltée] and Formothane Saguenay Inc.—will be able to rely on financial assistance from the Government of Canada to improve their production capacity, implement commercialization strategies and acquire strategic equipment. These projects will generate total investments of more than $7.6 million and create 38 new jobs in the area.

The repayable contributions totalling $2,654,172 were announced today by the Honourable Diane Lebouthillier, Minister of National Revenue, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for CED.

The funding has been granted through the Quebec Economic Development Program.

6482066 Québec Inc. (PCP Aluminium)

Three repayable contributions of $517,500, $440,500 and $240,000 out of a total investment of $3,206,000

CED’s assistance covers two expansion and productivity improvement projects and a marketing and export project.

With these contributions, the Saguenay SME can acquire leading-edge production equipment, including a plate saw and an aluminum chip management system, and cover the fees and expenses related to the plant layout. CED’s assistance will also cover the cost of equipment needed to optimize the milling system, thus reducing the company’s manufacturing lead time and helping it grow.

With one of these contributions, CED is supporting PCP Aluminium’s marketing strategy in Mexico and South America, which involves opening a sales office in Mexico, hiring two business representatives, making representations to potential clients, taking part in international trade shows and implementing a communications/marketing plan.

PCP Aluminium has been in business since 2006 and operates in the aluminum processing sector, cutting and fabricating aluminum plates and blocks of various sizes and thicknesses to meet client needs (trade-marks: ALCA 5, MAX 5, ALCAMAX and BUSPLATE). Its products are used in the aerospace industry; the manufacture of industrial equipment, moulds and templates for the marine and automobile industries; plastic processing; precision machining; the construction of devices; and electricity transmission. The company has 55 employees and these three projects will create 10 additional jobs.

9216-3146 Québec Inc. (Microbrasserie du Saguenay)
[website in French only]

Repayable contribution of $664,400 out of a total investment of $2,495,500

The purpose of the project is to grow the business and improve productivity through the acquisition of production equipment. CED’s contribution will go toward the purchase of equipment needed for the canning process, namely a centrifuge and fermenters.

Demand for beer produced by this young company has increased dramatically, so the microbrewery has to boost its production capacity accordingly. It plans to increase annual production from 12,000 to 28,000 hectolitres. It will then be able to develop other markets, including the United States and Japan.

Microbrasserie du Saguenay is an industrial microbrewery and is part of the Voie Maltée group. It has been producing some 20 beer varieties since 2015. Its original, innovative products are sold in cans and kegs at many supermarkets, including Métro, IGA, Super C, Costco and Sobey’s, and at specialty shops. Beer lovers can also sample these products at establishments across Quebec. La Voie Maltée currently employs 14 people, and the project will add seven new jobs.

Industries DODEC Inc.

Two repayable contributions of $391,500 and $105,990 out of a total investment of $1,136,299

CED’s assistance covers an expansion and productivity improvement project and a marketing and export project.

With CED’s assistance, the company was able to acquire and install equipment, including a robotic welder and hydraulic plate rollers. With this high-precision equipment, the business has improved its productivity and can take on another project, that of diversifying its markets.

The enterprise has launched a marketing project in the northeastern United States and in West Africa, which involves hiring an international business development expert; developing or updating communications tools, including a Web strategy; making representations to potential clients; and participating in trade shows and exhibitions.

With the expertise of its 80 employees, the business has been manufacturing and repairing industrial parts since 1975, including various components such as lifting appliances, dam gates, hydro-mechanical parts, gears, crucibles, buckets and mechanically welded parts. The company is part of prime contractor value chains in the renewable energy, aluminum, forestry and mining sectors. DODEC offers a fully integrated service line to its clients, from design to installation.

The SME sets itself apart because it is the only certified Hardox Wearparts company in Saguenay–Lac-St-Jean. It is also the only authorized Sumitomo repair outlet in the region and is authorized by FLSmidth for the repair of heavy equipment. The enterprise is also the only Quebec distributor of Toolox engineering steel. The projects will help create seven jobs.


Noriske [Équipement Saguenay (1982) Ltée]

Repayable contribution of $217,282 out of a total investment of $434,564

CED’s assistance covers a marketing, export, productivity and expansion project.

With CED’s assistance, the enterprise was able to boost its production capacity and start implementing a marketing strategy in the United States to grow the business on the international scene. The project activities, all of which are covered by CED’s assistance, include the acquisition of production equipment, the development of communications tools, advertising, promotion and representation.

Founded in 1982, Noriske [also known as Équipement Saguenay (1982) Ltée.] designs and manufactures protective equipment to ensure the safety of workers in industrial environments that present difficult conditions and where there is a risk of injury and death.

The Saguenay enterprise is the main supplier for the aluminum industry in Canada and also supplies paper mills, foundries and municipalities in Quebec. Owned by the Savard family since 1982 and transferred to the second generation in 2004, Noriske employs 58 people. The project will help create 10 jobs.

Formothane Saguenay Inc.

Repayable contribution of $77,000 out of a total investment of $355,000

CED’s assistance covers an enterprise creation and start-up project.

The various project costs are related to the acquisition of production and storage equipment, a computer system and raw materials; leasehold improvements; and working capital injection. CED’s contribution will cover the acquisition of the equipment and computer system and leasehold improvements.

Founded in Saguenay in 2017, Formothane Saguenay specializes in the distribution and processing of all types of plastic and the moulding of urethane parts. This innovative SME welds all types of polymers, making the products resistant to corrosion, abrasion, UV rays, mould and chemicals. The company will be part of two prime contractor value chains in the Saguenay–Lac-Saint-Jean region (Rio Tinto Alcan and Resolute Forest Products). This business start-up will create four jobs in the region.

Summary

• Number of projects: 8
• Number of jobs created:  38
• CED’s contributions: $2,654,172
• Total investments generated by these projects: $7,627,363

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LGCJ.: