Sarnia-Lambton MP Marilyn Gladu says Ottawa’s $35 million contribution to the Nova Chemicals’ $2-billion expansion in St. Clair Township is less than expected, but still welcome.
Gladu said federal officials who were originally expected to attended Nova’s announcement in Sarnia back on Dec. 8 pulled out the night before.
Brad Duguid, Ontario’s minister of economic development and growth, attended the event and announced the province was granting $100 million to Nova’s project to build a new polyethylene plant and expand its Corunna site.
Gladu said she’s disappointed the federal representatives weren’t part of the original announcement.
“My understanding at the time was that they were going to match the province with the $100 million,” she said.
“I was surprised to find out it was $35 million.”
Navdeep Bains, the federal minister of innovation, science and economic development, made that announcement Jan. 23 while he was attending the World Economic Forum in Davos, Switzerland.
Gladu, a Conservative MP, described it as a “subtle” announcement.
“If it made a blip on the radar anywhere, it’s quite difficult to find it.”
She said she heard from Nova representatives the announcement was being made in Switzerland.
“They said, ‘We’re happy to receive whatever we can from the government,’ so they were thankful,” Gladu said.
Bains said in a news release that in addition to helping create and maintain jobs in Ontario and Alberta, the $35 million in funding will further research and development “and will result in more environmentally friendly chemical production.”
Naushad Jamani, Nova Chemicals’ senior vice-president of olefins and feedstocks, said its multi-billion dollar project will expand its facility in Ontario by more than 50 per cent, “and grow our already significant R and D and innovation capabilities in both Alberta and Ontario.”
He added, “We are grateful to the federal government for its support and are proud to enhance our asset base in Canada, provide stable, high-paying jobs and help make Canada an even bigger global player in the petrochemicals industry.”
The $35 million from the federal government “is a good sum of money,” Gladu said.
“While I wish it was more, I think it’s especially positive coming from this government that has been hating on fossil fuels, in general.”
Nova Chemicals has invested heavily in recent years to convert its Corunna site to use up to 100 per cent natural gas liquids to make ethylene, delivered to its nearby Mooretown and St. Clair River sites to manufacture polyethylene plastic.
The $2-billion project the company announced in December will include a third polyethylene plant, right next door to its Corunna site, expected to begin commercial production in late 2021.
The company has estimated 800 to 1,400 construction workers will be involved in the projects at any given time, and 150 permanent jobs will be created at the new plant.
Bain’s announcement of the $35 million for Nova Chemicals came just one day before Prime Minister Justin Trudeau promised to use Canada’s G7 presidency to get other nations to commit to reducing or phasing out single-use plastics.
pmorden@postmedia.com
With files from The Canadian Press
http://www.theobserver.ca/2018/02/15/federal-government-made-announcement-in-switzerland