“The role of AluQuebec is to encourage the development of the culture of aluminium in Quebec,” MARIE LAPOINTE, CEO AluQuébec

AlCircle had an opportunity to talk to Ms MARIE LAPOINTE, the Chief Executive Officer of AluQuébec; the Quebec Aluminium cluster. She obtained more than 25 years of senior executive experience at Rio Tinto before joining AluQuébec. She is a marketing and strategic analysis specialist and leads the implementation of plans and projects decided by the organization and the cluster’s working groups. She builds on support services provided to all the participants in the Quebec aluminium sector. Team AlCircle had an opportunity to meet her personally in Quebec and get a first-hand understanding of how AluQuébec is playing its part in bringing together the entire aluminium value chain present in Quebec.

Here is an excerpt from the interview:

AlCircle: Tell us in brief about the association of AluQuébec with the aluminium sector in Canada.

Ms LAPOINTE: The Aluminium Cluster is a non-profit organization, created in 2013, with both private and public supports. Named AluQuébec in 2015, it became a significant part of the Aluminium Strategy of Quebec, developed by the Minister of Economy, Science and Innovation of the government of Quebec.

Indeed, the objective of AluQuébec is to double the transformation of Aluminium in business dollars in Québec by 2025. We are, so far, in line with this objective, with 7% increase per year in processing activities for the past 3 years (17 % increase in the transportation sector). Furthermore we are going to realize it by supporting the growth and competitiveness of the existing and new companies by developing new innovative products and extending new geographic opportunities.

AlCircle: What role does AluQuébec play in Québec Aluminium Development Strategy?

Ms LAPOINTE: Our key role is to bring together producers, processors, equipment manufacturers and specialized suppliers as well as research, development and training centers, around concrete and structuring projects.
 
Indeed, the Mission of AluQuébec is to team up with key industry stakeholders, tool up businesses to increase industry competitiveness, and developing and promoting the industry.

Image: Alutech            

AlCircle: Please give us a heads up on AluQuébec’s strategy for the Quebec Aluminium sector.

Ms LAPOINTE: Our strategy is based on four pillar initiatives:

First, to support the growth of the business through our four working groups with specific market streams: Transportation equipment, Infrastructure and bridges, sustainable construction and buildings and, equipment and specialized suppliers.  To assist the aluminium processors better, we have launched, the Aluminium Center of excellence in November 2016, which is mission is to collect, develop and disseminate the knowledge available in the area of aluminium processing. Its mandate is also to promote and facilitate the use of aluminium through technical support, training, referencing and outreach.

Second, we want to enhance the integration of the value chain by some structuring projects in second and third transformation (adding bigger extrusion and rolling capacities, developing assembling capacities for public transportation).

Third, brand our processors and the green and sustainable aluminium of Québec;

And finally, work in collaboration with every stakeholder, institutions and organisms in order to succeed more rapidly in a compelling manner.

AlCircle: Please give us an overview of the major participants of the Quebec aluminium Cluster.

Ms LAPOINTE: In 2017, AluQuebec reached out close to more than 500 processing businesses among 1500 in Quebec, via various activities organized by AluQuébec’s working groups to answer the needs of the processors. For example several sessions on the available financing programs across the province, commercial missions (like the one in India, last November), specific technical best practices and shop visit sessions, information about international trade, commercialization of innovations, etc.    

AlCircle: How is Quebec planning to change its status from a net exporter of aluminium to a consumer of aluminium?

Ms LAPOINTE: Let’s be clear on this matter;  with 8 Millions of people in Quebec within a population of 450 Millions in America, our products are dedicated to the exported markets since the beginning of the production of aluminium, 116 years ago, and on a significant manner since the 40’s with the use of aluminium in the aviation. Our processors are mostly exporters, such as the producers, in order to serve the growing aluminium consumptions in America, which is forecasted to be about 4% by 2025 in transportation and building industry.

Having said that, the role of AluQuebec is to encourage the development of the culture of aluminium in Quebec by working with architects, designers, engineers and Universities. The Aluminium Center of Excellence, created in November 2016, plays a specific role with these targets groups.  Our ambition is also to create new emerging markets such as the bridges and gateways, trains and subways for the American markets.  

AlCircle: India is growing as a producer and consumer of aluminium. What kind of business association Quebec is looking at with the Indian aluminium industry?

Ms LAPOINTE: Indeed, aluminium consumption is linked with urbanization and mobility growth, and on this matter, Canada and India have a long term relationship. In 2016 Asia represented 6% of the aluminium industry, and India operates now modern big scale and world –class smelters, with its robust advantage of bauxite/alumina proximity and knowhow in electrolytic reduction and aluminium casting.

On this side, our world-class specialized equipment suppliers have developed an embedded offer, from the engineering up to customized and 4.0 solutions for the existing and new production centers. We could collaborate in the best practices sharing and education. In downstream, we may learn a lot in the future from some Indian aluminium producers and major automotive integrator leaders.  

AlCircle: The Trump administration’s 10% tariff on aluminium imports from all countries came as a shocker to many countries including Canada. Being the leading exporter of aluminium to the US, what will be Canada’s stance if Trump goes ahead with the Tariffs after June 1?

Ms LAPOINTE: If ever it happens – this would be counterproductive, as Quebec is a natural supplier to US, and some products can cross 5 to 6 times the frontiers in the value chain up to the customers   - the impact would be higher prices for the American consumers for their finished products.  The regional premiums have already reacted to this development soaring high. For some third transformers, unable to pass through the price augmentation, this would represent some adjustments in their portfolios toward more added value products for some of them, and more geographical diversification for some others toward free trade markets gradually in Asia (with the recent trade agreement Asia –Pacific ratified with Canada, and the CETA with Europe.) 

Image: Cometal     

AlCircle: The issue of import quota and tariff is also complicating the process to update the North American Free Trade Agreement. What is your outlook for Canada’s aluminium sector under these circumstances?

Ms LAPOINTE: The ALENA (NAFTA) and aluminium tariffs are two separated issues and should remain like that.  

For AluQuébec, the most important challenges are to maintain and improve the efficiency of the value chain up to the clients and consumers, develop the culture of the aluminium use in America and develop the aluminium of the Future, a competitive 4.0 and sustainable industry. AluQuebec received a mandate in March by the government of Quebec to work on this project, as an integrated part of the strategy. Last week we were in Milano at a forum on this topic where AlCircle presented a very comprehensive report.   We are delighted to collaborate with this digital platform for aluminium in the next years on this exciting and important journey for the 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."