Source: Invest in Canada
Ontario, which comes from the Iroquois word “Kanadario” meaning “beautiful lake”, “beautiful water” or “sparkling water” is Canada’s most populous and second-largest province. True to its name, Ontario boasts an abundance of natural water bodies and is bordered by Hudson Bay and James Bay to the north, the Great Lakes and the United States to the south, Quebec to the east, and Manitoba to the west. In addition to its strategic location, the province offers unparalleled opportunities for investments in vast range of industries such as advanced manufacturing, life sciences, technology, critical minerals, forestry, and value-added agriculture.
Foreign Direct Investment (FDI) Attraction
These features contribute to Ontario’s standing as a premier destination for foreign investment:
- A stable business climate geared towards innovation, supported by a wide array of business incentives designed to facilitate the decision-making process for foreign investors looking to relocate or expand their operations, including grants, zero-interest loans, research and development (R&D) Tax Credits, and clean energy funding.
- An impressive talent pool with 74% of working-age adults holding a post-secondary education. The province is also home to over 70,000 science, technology, engineering and mathematics (STEM) graduate annually, ranking first in Canada.
- Clean and affordable electricity with a Comprehensive Electricity Plan, providing industrial consumers, competitively priced electricity rates. In 2022, nearly 90% of Ontario’s electricity generation came from clean sources demonstrating the province’s commitment to sustainable energy. A strategic location providing businesses with seamless access to key markets in North America and beyond.
“What sets Ontario apart is the strengths it has across future-focused industries like advanced manufacturing, life sciences, and technology which are increasingly interconnected. Companies are leveraging Ontario’s AI talent to enhance healthcare delivery and the province’s biotech expertise to innovate battery technologies. It is this convergence of sectoral excellence and talent that makes Ontario exceptionally compelling to investors.”
– Michael Fedchyshyn, Interim CEO and VP, Strategies and Business Solutions, Invest Ontario
FDI in action
Among the numerous global investors enticed by Ontario’s value proposition is Asahi Kasei, a chemical and materials company based in Japan. Asahi Kasei has chosen Port Colborne for its integrated plant dedicated to the base manufacturing coating of Hipore lithium-ion battery separators of approximately $1.6B.
Since March 2023, Invest in Canada has worked hand-in-hand with the Asahi Kasei team, with support from Invest Ontario, the Ontario Ministry of Economic Development, Job Creation and Trade, the Niagara Region Economic Development, and the Trade Commissioner Services (TCS) and more than five Government of Canada departments and agencies. Invest in Canada provided various services including up-to-date information sharing on government programs and incentives, and site visit coordination.
In February 2023, biopharmaceutical global leader, AstraZeneca, announced a significant expansion of its R&D operations in Mississauga, including the creation of a new Alexion Development Hub dedicated to advancing research in rare diseases. This investment is bringing 500 skilled high-paying scientific and high-tech jobs.
Invest in Canada has been supporting this project with market intelligence, value proposition, biomanufacturing strategy updates, and introductions to partners as this investment advanced. Invest Ontario and Invest Mississauga were key partners in supporting AstraZeneca’s decision to invest in Ontario.
FDI Impact
FDI has significantly bolstered Ontario’s economy. Between 2013 and 2023 alone, Ontario attracted nearly 5,000 FDI projects. These projects, spanning a diverse range of sectors, have created over 141,000 jobs and play a crucial role in developing and sustaining the supply chains connected to each investment in the province. In recent years, Ontario has seen the establishment of several high-profile companies such as PowerCo and LG, promising to boost the local economy and position the province as a key player in renewable energy and battery manufacturing.
“FDI has a transformative impact on Ontario, driving the creation of quality jobs, bolstering the local economy, and fuelling innovation and sustainability. Invest in Canada is committed to showcasing Ontario’s strengths on the world stage, ensuring that global businesses see the immense potential Ontario has to offer as the place to expand and thrive.”
– Laurel Broten, CEO of Invest in Canada
About Ontario
Ontario, one of North America’s largest jurisdictions (covering more than 1 million square kilometres), is a dynamic province known for its economic vitality and cultural diversity. Home to 40% of Canada’s population, the province’s population is steadily approaching 16 million people. This growth underpins its role as a powerhouse in the nation’s political, cultural, and economic landscape. Additionally, Ontario is home to the largest francophone population outside of Quebec, contributing to the province’s rich linguistic and cultural diversity.
The national capital, Ottawa, serves as the heart of Canada’s federal government. Toronto, Ontario’s largest city, stands as a vibrant economic and cultural hub reflecting the province dynamism. Its international airport (YYZ) is Canada’s largest and busiest airport and ranks as the second busiest international passenger gateway in North America.
Partner Spotlight
Invest Ontario works with companies who are looking to expand their operations in Ontario. Whether they are already here or coming to the province for the first time, Invest Ontario is here to streamline the process and identify the right partners for investors. Leveraging Ontario’s strengths in advanced manufacturing, life sciences and technology, the Agency is focused on attracting large-scale, catalytic investments which will foster inclusive and collaborative economic growth throughout the province.
The Ministry of Economic Development, Job Creation and Trade supports a strong, innovative economy that can provide jobs, opportunities and prosperity for all Ontarians. The Ministry provides leadership in promoting Ontario’s economic growth and competitiveness by supporting commercialization efforts to bring innovative ideas to market; supporting sector competitiveness and clusters; pursuing increased investment in Ontario; facilitating opportunities to boost Ontario exports; and providing advice and support services to small and medium-sized businesses in Ontario.