ONTARIO SPOTLIGHT
From Site Selection magazine, November 2006

 
 
Power to the Province

Ontario Premier Dalton McGuinty (left) and Mark Lievonen, president of Sanofi Pasteur Limited, tour Sanofi Pasteur's campus near Toronto. The facility is expanding to meet growing demand for the company's vaccines.
Life sciences grow as renewable energy takes wind in Ontario.



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anada's largest vaccine manufacturer is getting bigger. Sanofi Pasteur Canada and its predecessors have operated in the Toronto area for more than 90 years. It is now an important global supplier of children's vaccines. The campus in north Toronto is adding a US$26.6- million (CA$30- million) expansion at its global manufacturing site, Connaught Campus. The investment, which will not add to the campus work force of more than 1,100, will boost manufacturing capacity for the company's acellular pertussis and polio vaccine.
   Mark Lievonen, president of Sanofi Pasteur Limited, tells Site Selection that the Toronto area is a good source of top- notch employees needed for vaccine manufacturing. The Toronto campus also performs R&D, marketing and support functions.
   "We've had good success in developing a high quality work force from Toronto and the surrounding region, but we also go around the world to attract the people we need," he says.
   The current expansion, due to be completed in early 2007, likely won't be the last for the Toronto campus. Lievonen says demand is growing rapidly for Sanofi Pasteur vaccine, and there is plenty of room at the 50- acre (20- hectare) Connaught campus for expansion. The Canada- produced vaccine is now licensed and exported to 52 countries, including the U.S. and the U.K.
   Ontario Premier and Minister of Research & Innovation Dalton McGuinty, on hand for the September 20 expansion announcement, took the opportunity to announce that the province is adding 12,000 graduate student spaces over the next two years.
   GlaxoSmithKline is also expanding in Ontario, with a US20.2- million (CA$23- million) expansion of its Mississauga facility that will add 75 jobs. The facility ships 25 percent of Canada's pharmaceutical exports, including treatments for HIV, hepatitis B, asthma and macular degeneration.
   One focus of Ontario's life sciences effort in recent years has been the MaRS Discovery District in downtown Toronto. Government and private funding is helping MaRS more than double its capacity to more than 1.5 million sq. ft. (139,350 sq. m.). One of the latest biotech firms to establish MaRS residency is CombiMatrix Molecular Diagnostics, a specialist in technology involving genomics.
   The MaRS Centre received a major accolade in June when The Intelligent Community Forum (ICF) gave it its Intelligent Building of the Year award. ICF selected MaRS for supporting R&D growth taking place in Toronto and Ontario. ICF cited "the strategy of the development as one designed to build and sustain an entrepreneurial ecosystem, which includes services that assist in providing risk capital, management and business tools, as well as access to global markets, in support of young and emerging companies." ICF said creating broadband networks to connect Canada's scientific, business and financial communities to the international trade markets is essential to Canada's ability to continue its economic expansion.
Just in time for the Christmas season, Ferrero has opened one of the largest candy factories in North America in Brantford. The 850,000- sq.- ft. (79,000- sq.- m.), $263.5- million (CA$300- million) facility will employ 600 by 2007. The Italy- based company is producing its popular Ferrero Rocher candy at the site and will eventually add production of its other brands, including Nutella and Tic Tac. The plant, which could be doubled in size as business warrants, will serve the markets of North and Central America.

Alternative Energies Fuel Investments
   The Canadian government has set a goal of an average 5- percent renewable- fuel content in vehicle fuels by 2010. Ethanol production in Ontario is advancing that aim in a big way with Canada's largest ethanol plant opening in August and several other facilities now in various stages of development.
   Suncor Energy Products' plant in Sarnia, a US$108 million (CA$120- million) investment, will produce 52.8 million gallons (200 million litres) annually and create 38 jobs. Feedstock will come from 20 million bushels of corn, sourced primarily from Ontario farmers. The plant was partially funded with US$19.8 million (CA$22 million) from the Government of Canada's Ethanol Expansion Program.
   Suncor's plant would be equaled if a facility planned by Canada's largest ethanol producer gains environmental permits. GreenField Ethanol plans a plant in Johnstown, which would begin operation in March 2008. GreenField already operates plants in Chatham and Tiverton, Ont., and also plans one for Hensall.
   Wind power is also creating jobs in the province: Ontario's first fully dedicated wind tower manufacturing plant is now operational in Fort Erie. DMI, a North Dakota- based heavy steel manufacturer specializing in wind tower fabrication, refurbished a plant to produce wind tower sections for Canadian and northern U.S. customers. DMI, which has manufactured more than 1,800 wind towers since 1999, says employment will reach 125 by the end of 2006 and possibly 225 by the end of 2007.
   Wind energy projects have been stirring quite a breeze in the province since 2004 with many being built in response to government initiatives. Ontario currently has nine wind farms and has an installed wind power capacity of 220 megawatts, second to Alberta among Canadian provinces, according to figures compiled by the Canadian Wind Energy Association.
   Ontario's largest wind farm opened in Port Burwell in April. The Erie Shores wind farm, a US$164.8- million (CA$186- million) investment on the north shore of Lake Erie, is a 99- megawatt project powered by 66 turbines that generate enough electricity to power more than 25,000 homes. April, not March, was the windy month for Ontario this year as two other projects – the 40- megawatt Kingsbridge I near Goderich, and the 67- megawatt Melanchton near Shelburne – also began commercial operations. Three more wind farms are set to come on line in the province by the end of 2006.
   Toronto- based AIM PowerGen Corp., operator of Erie Shores, was acquired in August by a British firm, Renewable Energy Generation, and is now considering building an even larger, 150- megawatt wind farm on the Erie shore in the Erieau- Blenheim area.
   To encourage development of renewable electricity sources, the province has set a standard price with the aim of making it easier for entrepreneurs and small businesses to sell clean power from small projects to the grid, a process that has been too costly and complex for small producers. Through Ontario's Standard Offer Program, the government will set a fixed price for small renewable energy projects. Under the plan, the Ontario Power Authority will purchase electricity produced by wind, biomass or small hydroelectric at a base price of 11 Canadian cents (9.6 U.S. cents) per kilowatt- hour. The fixed price for solar will be 42 Canadian cents (37 U.S. cents) per kilowatt- hour. Ontario official say this will add up to 1,000 megawatts of renewable energy to the province's electricity supply over the next decade, or enough to power 250,000 homes.

UPS Logistics Campus Makes Debut
   UPS has opened an 800,000- sq.- ft. (74,000- sq.- m.) logistics campus in Burlington for UPS Supply Chain Solutions. The US$70.8- million (CA$80- million) project is the second largest UPS logistics facility in North America.
   Two buildings comprise the campus, also home to the Canadian headquarters of UPS Supply Chain Solutions: a 600,000- sq.- ft. (55,740- sq.- m.) distribution center and a specialized 207,000- sq.- ft. (19,230- sq.- m.) building that focuses on the pharmaceutical and medical device industries.

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