ollowing the World Economic Forum in Switzerland in January 2003, the Québec government estimated US$438 million in investment projects would be carried out in the province over the following 18 months.
        Just five months later, the accuracy of that projection is already apparent: an array of new infrastructure and investments is situated here, from high-tech and bio-pharmaceutical to aerospace and light manufacturing companies.
        That post-Forum forecast also included $219 million in the mines and minerals sector by a European company and Australia-based Rio Tinto. And Québec's aluminum processing industry, government officials said, will see investments of $109 million – with another $109 million going to sectors such as biotechnology.
        This bilingual Canadian province is big – three times the size of France, it stretches from the northern borders of New York, Vermont and New Hampshire almost to the Arctic Circle. It's industrially and economically robust – helping to fuel Canada's economic good health with the kind of "very favorable" business environment U.S. companies like to take advantage of, says Stephen Gallagher, managing director of New York-based bank Societe general, which deals with companies located in Québec.
        Eugene Page, a senior managing director at site location firm Charles Dunn Co. in Los Angeles, says the fact that the entire continent now operates as a free trade area has changed businesses' perspectives about where they can locate. And, in many ways, Québec "feels like home" to American players, he says, because of its stable economy, solid financial and legal systems, world-class R&D infrastructure and lifestyle amenities. Through NAFTA, Québec has access to 410 million consumers, 45 percent of whom live within 600 miles of its border with its largest city, Montréal, a one-hour flight from New York City.

Pedal to the Metal

Swiss power equipment company ABB plans a $12-million plant upgrade for Varennes, where high-voltage transformers – a strong performer for the company – are a specialty. As part of its focused factory strategy, ABB also has recently transferred specialty capacitor production to its Québec City plant from England. ABB Canada has 25 facilities nationwide, with 10 of them in Québec. What's more, another expansion – by the consortium-owned Aluminerie Alouette smelter along the St. Lawrence River in Sept-Iles – will benefit ABB, which has won a $30-million contract to provide the expanded plant with power systems. The $1-billion smelter expansion is due to be complete in 2005, more than doubling capacity and creating some 340 new positions.
        In 2003, new metals, mining and mineral sector investments in Québec also include Alcan's $60-million potlining center in Alma and two investments by Alcoa. Since its 1991 start-up, Alcoa's aluminum processing plant in Deschambault has been a top performer. Now, the company says, it's recognizing employees' efforts by investing $730 million to more than double capacity.
        Alcoa Chairman and CEO Alain Belda says the expansion means the plant can "continue beating its own production records," and remain one of the world's most highly performing aluminum plants. The project is eligible for tax exemptions and interest-free loans of as much as $190 million, and Hydro-Québec will provide the 500 megawatts of electricity necessary for the plant's expansion at a regulated industrial rate. The world's largest aluminum producer, Alcoa is also upgrading and expanding its Baie-Comeau aluminum plant with a similar investment of about $730 million. The company now has 19 plants and facilities in Canada, and once again, 10 are in Québec.
        It's a figure that reflects corporate confidence by a global heavyweight, confidence in a Canadian province that offers all kinds of industry players the range of assets, infrastructure, incentives and cost-effective advantages that often spell the difference between success and failure in a competitive market.