In conversation with Quebec Consul and Director Dominic Marcotte and AluQuébec Working Groups Director Marie-Élaine Jacome

AlCircle had a pleasant opportunity to speak to Mr. Dominic Marcotte, Consul & Director of Québec Government Office in Mumbai, and to Marie-Élaine Jacome, Working Groups Director of AluQuébec at the 7th International Conference on Aluminium and Exhibition (INCAL-2019), Bhubaneswar. Mr. Dominic became the Director of the Québec Government Office in Mumbai in late summer 2016. Previously, he served as the Director of Economic Affairs at the Québec Government Office in Tokyo. Ms. Marie-Élaine Jacome, with more than ten years of manufacturing sector experience, is associated with the working groups of AluQuébec since October 2015. Both Mr. Dominic and Ms. Marie delightfully shared with us the business goal of Quebec’s aluminium industry, and their viewpoint on the US metal tariffs and how they impacted on the industry.

To give you more insight into our conversation with the two prestigious persons, here is an excerpt from the interview:

AlCircle.com: We are glad to see such solid presence from the primary aluminium technology companies from Quebec in Aluminium India 2019. How do they expect to cater to the Indian aluminium sector?

Dominic: I think it is interesting to have those companies here, for some of them are coming to India for the first time. They can have a closer look at the Indian market, and as I say, it’s important to open to new markets. One of our primary markets is the United States, but India is also a big market in the aluminium industry. So, for them to come here and to see what opportunities and collaborations/joint ventures could happen is something very important. And our government encourages this.

Marie: In the days prior to Aluminium India, we met three smelters – Vedanta, Hindalco, and Nalco. 6 Quebec’s equipment manufacturers and specialized suppliers had the chance to present their expertise and technological solutions. A lot of opportunities have already been identified. So, there may be more collaborations between Quebec and India.

Dominic: And also strengthen the links that they have with some companies because some of them already do business with these companies that they visited this week. So, it’s also interesting to work on the relationship that we already have with them.

Marie: We can see our Quebec’s equipment manufacturers as partners to help key actors of the Indian aluminium sector achieve their goals.

AlCircle.com: India is growing both as a producer and consumer of aluminium. Where do you see the maximum potential for business collaboration?

Marie: Well, it’s for the Quebec’s equipment manufacturers and for their specialized suppliers of technology with the smelters as they have a great expertise. Aluminium in Quebec is a world-class industry. Our enterprises can provide as much as 90 per cent of the equipment needed for a new casthouse. Another opportunity for a very interesting collaboration between Quebec and India is that Quebec has eight research centres. We are looking forward to collaborate and share best practices between our research centres and universities in India.

Dominic: We were talking with the companies in the past two days and one came up and said India wants and needs to increase the aluminium production. The relevant companies with the expertise help to ramp up the production with efficiency and quality; so, it’s a good match right now in India for offering these technologies to the Indian companies.

AlCircle.com: Has the new USMCA agreement improved the diplomatic and the business relation between Canada and the U.S.?

Dominic: Talks to renegotiate NAFTA began in August 2017. Quebec’s position was very much aligned with most of North America. NAFTA is an essential framework for North American competitiveness that has made us all more prosperous, but the agreement itself was outdated. We fully supported its modernization, a quarter of a century after it came into force. Quebec followed the trilateral negotiations closely through its representative on this issue. There were issues to resolve as in any negotiation, no question, but we were pleased that the new agreement was signed a little more than a year after negotiations began.

Throughout this process, the business community in both of our countries really came out to support economic integration between the U.S., Canada and Mexico, and demonstrated over and over again just how important it is to our economies. We want the USMCA to be ratified in Canada, and I think there is a pathway forward to do that. However, what is troubling is that Section 232 tariffs remain in place for Canada on aluminium and steel despite a signed trilateral deal. I think the road ahead is difficult without resolution on this issue sooner rather than later.

AlCircle.com: Has the aluminium import tariffs by Trump administration affected the aluminium industry in Quebec?

Dominic: Those who are affected are the secondary processing companies. Fortunately, there are not many in the secondary processing sector. Hence we say it’s important to open to another market, like the Indian market. This is why our job here and like I told you some offices that we have in the world is to say there’s something interesting here and that there are good opportunities here so please come and meet with the industry and try to sell your product, your technology and everything to these companies. That’s why we are organising this kind of mission here in India.

There are nine aluminium smelters, including primary processing and secondary processing. But we have a lot, representing about 1400 aluminium processors that make components for the transportation sector, for buildings and more. One of the particular sectors is having almost all the subset to cover. Aluminium is used by companies in transportation, construction and even in the developing new technologies domain. So, different sectors and different companies use aluminium.

It should be noted that 90% of Canada’s production in aluminium sector comes from Quebec.

Québec aluminium and steel industries are deeply integrated with their American counterparts. There is no Canadian and US steel and aluminium industry; these are North American industries. Together, we have developed major cross-border operations that provide thousands of direct and indirect well-paying jobs in both countries.

Many U.S. firms rely on the exceptional quality of Québec aluminium and steel products and by-products to build finished products in the automotive, construction and energy sectors. Example: in Fort Wayne, IN, Chevrolet relies on Québec aluminium to build its Silverado.

Aluminium and steel trade between the U.S. and Québec make our companies more effective, productive and competitive. Since these sectors of our economies are so deeply integrated, protectionist efforts to limit aluminium and steel trade between us will kill quality American and Canadian jobs. Both, industry and labour agree with this assessment: the United Steelworkers work in tandem with Québec (Syndicat des Métallos – FTQ) and Canadian aluminium industry workers on this issue.

Québec aluminium also has the smallest environmental footprint, as its production is based on hydroelectricity.

In fact, we demand that Canada be excluded from the imposition of tariffs or quotas. Targeting imports from Canada will do nothing to resolve the underlying problem.

AlCircle.com: Both Canada and India are net exporters of aluminium. Do you think it is the right time to focus on the processing or downstream sector to reduce dependability on our importers?

Marie: Aluminium is the second largest source of exportation in Quebec, and it’s a good time for each of us to continue to focus on exportation.

AlCircle.com: What are the key areas where the Quebec government is currently focusing to optimise the profitability of Quebec aluminium sector?

Dominic: We have initiatives to fulfil different industry needs like labour force, industrialisation, and digitalisation. So, it’s not one focus, but many initiatives to help companies do business and develop the business. We want the industry to improve as a whole.

AlCircle.com: How do you think digitalization and automation can revolutionize the aluminium sector in improving productivity and doing their business in a smarter way? 

Dominic: One of the advantages of digitalisation is the improvement of the production. So many accidents are happening in factories, but with automation the risk is less. Also, it reduces human error which has been resulting due to manual processes all these years. Furthermore, automation gives you more precision and more quality in terms of manufacturing.

Besides it also leads to skill development because automation will need some kind of supervision. You cannot rely completely on the machine; so, you need skilled labour force that would encourage more automation in the industry. Therefore automation will play a key role in improving the production and Quebec’s technological expertise can be put to use for the same.

Marie: With digitalization, there is so much data that we can use to make better decisions. So, you can help enterprise to be more competitive and proactive. When we met the Principal Secretary, Industries, Government of Odisha, he asked us how it is possible to improve from the old smelter to a new smelter. We said that, we have the technology solutions on our side and artificial intelligence can also help you to make better decision and increase the productivity.

AlCircle.com: How has been your experience so far in Aluminium India 2019 and what are your expectations from this mega event in India?

Dominic: I think it’s very positive. It is the first time we are attending this event. It’s a good momentum because the industry is at the same point, at the same place, and at the same time. And the companies that we brought here met some industries here after visiting three smelters. For people who are there to take the decision, it was a very good experience for them. This is the place to be if you want to talk with the Indian industry.

It is interesting to notice that people know Quebec. People know Quebec is a big player in the world in terms of aluminium. I was at the booth today, and people were coming and saying Quebec is a big player. They want to meet the companies and they have a few questions.

In fact, it was a big compliment when the Principal Secretary said we know that Quebec has been very strong and has developed its aluminium industry in an extremely structured manner. So, we would like to learn from Quebec. This accolade that Quebec has been successful in structuring and keeping the sector very well organised means a lot to us. So, Québec’s aluminium industry can be a reference model for others who are planning to develop their aluminium industry.  

Disclaimer: “The information presented herein is neither intended nor implied to be a substitute for professional advice. The views and opinions shared in the interview section of www.alcircle.com are unique to the interviewees and do not necessarily reflect the viewpoint of www.alcircle.com."