Canada infra roadmap creates investment opportunities; reduces import dependence of aluminium extruded products

Canadian Minister for Infrastructure and Communities, Amarjeet Sohi who is accompanying Prime Minister, Justin Trudeau on his 8-day tour in India, said yesterday in Kolkata that there is ample opportunity for Indians to participate in the North American nation’s ambitious 10-year infrastructure roadmap. Canada has been importing small quantities of aluminium bar rods and profiles from India over the years. In 2016, its total aluminium bar rods and profile import from India stood at 644.34 tonnes (approximately five per cent of the total aluminium bar rods and profile import).

The three-year (historic) and 2018-estimated aluminium bar rods and profiles import by Canada has trended as below:

It is clear from the above graph that Canada’s import of aluminium bar rods and profiles- a key component of modern infrastructure, has declined since 2015. Value of imports too have decreased year-over-year. From US$285 million in 2015, value of aluminium bar rods and profiles import has dropped to US$55.5 million.

This drastic decline in import can be attributed to two major factors: a. changes in the international trade scenario and tariff changes. b. increased focus on Canadian downstream aluminium sector. The second factor is noteworthy since the Government of Quebec has launched the Quebec Aluminium Development Strategy aimed at stimulating growth of the domestic aluminium industry covering the entire value-chain.

The strategy categorically aims at developing an active processing sector in Quebec so that the province can add value to the amount of aluminium produced in the region. Ever since, end user sectors like Building and Construction, Transportation etc. have been using more of domestically produced aluminium extruded products and relying less on imports. (Read: Special Focus: The Quebec aluminium cluster and the growth of Quebec Aluminium Industry)

"We see opportunity for Indians participating in the Canadian 180-billion dollar infrastructure (10-year) roadmap," Canadian Minister for Infrastructure and Communities, Amarjeet Sohi said.

The areas of infrastructure development in Canada include public transit, trade corridors, ports and airports.