Quebec Govt. undertakes to modernize its aluminium strategy; OEM’s seeks help to improve competitiveness for exports

As the Quebec Govt. wants to breathe new life into the aluminium industry, it needs to well listen to the subcontractors and suppliers of equipment towards aluminium smelter, who desires to double their exports over the next five years.

Éloïse Harvey, President of Mecfor and spokesperson for a dozen companies among those that manufacture the specialized equipment used by major primary aluminium producers around the world, said: “We are part of the equation."

Together, the group employs 900 people and generates revenues of 183 million, 57% of which already come from export markets.

While the Quebec government has undertaken to modernize its aluminium strategy, equipment manufacturers are asking for a helping hand to improve the competitiveness of the sector that exports the most in Quebec, with that of aeronautics.

Patrice Côté, President of Dynamic Concept, said: “We have efficient factories and our potential market is immense, but we have marketing challenges.”

Two spokespersons from the group of equipment manufacturers explained: “It is not easy for small companies to sell their very specialized products to one of the buyers scattered around the planet.”

In the brief, they submitted a report to Pierre Fitzgibbon, the Minister of the Economy and Innovation, who undertook to consult the industry, as they are demanding for increased financial assistance to market their products. However, existing export assistance programs are useful but insufficient, the two spokespersons stated.

This assistance could take the form of tax credits for international market development and an interest-free loan program to support the development of new products.

The member companies of the group are worried about the industry's present struggles, as they are dependent on primary aluminium producers.

The suppliers said, Quebec's aluminium smelters may claim to be modern and competitive concerning global competition, but they are lagging in terms of technology.

“Most of the factories of primary aluminium producers in Quebec are no longer at the cutting edge of technology,” they point out in their brief. “Quebec must mobilize at all costs to prevent these factories from depreciating and to imitate the American factories which are struggling to remain profitable and threaten to close their doors given the technological gap that has become insurmountable."

Currently, the investments of aluminium smelters are used only to maintain their assets, they deplore.

If the government wants to help primary metal producers modernize their factories or build new ones, it could link its support to recourse to Quebec suppliers, the equipment manufacturers also suggest.