Manufacturing Industry Profile §§ Lower Costs §§ Access to US and Canadian Markets §§ Serviced Industrial Lands §§ Affordable Lifestyle

July 2014

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Sarnia-Lambton is located in the province of Ontario in the geographical region known as Southwestern Ontario. The community is bordered on the north by Lake Huron, which flows into the St. Clair River, and shares its western border with the United States of America. Within Lambton County there are 11 municipalities, the largest being the City of Sarnia. Sarnia is located at the mouth of the St. Clair River and is connected to Michigan state via the Blue Water Bridge which is the busiest commercial link connecting Michigan state and the province of Ontario.

Sarnia-Lambton Manufacturing Industry Sarnia-Lambton has a rich manufacturing and innovation tradition that rapidly expanded with the discovery of the first commercial oil well in 1862. Although Sarnia-Lambton is well know for its oil and gas and refining roots, other manufacturing industries have also flourished in the area. Companies in the area manufacture a diverse range of products including playground equipment, auto parts, drainage products, military and police supplies, air filters, pallets, agricultural equipment, custom metal products, and food processing. Many manufacturers have located in the rural communities surrounding Sarnia such as Corunna, Petrolia, Warwick, Oil Springs and Lambton Shores. These communities offer an affordable lifestyle, which leads to higher workforce retention, resulting in reduced training costs and improved quality through highly qualified and experienced staff.

Multiple Routes to Multiple Markets Sarnia-Lambton is in the centre of the Great Lakes Industrial Corridor and provides immediate access to key North American markets in central Canada and the central and eastern United States through various transportation modes. § Lambton County is bisected by Highway 402, which runs

eastward to London and Toronto and to the west connecting with Michigan’s Interstate 94/69/75 network via the international Blue Water Bridge. The community is within 1 day drive to 65% of the U.S. market as well as major Ontario and Quebec markets.

§ Sarnia-Lambton is also connected to the US through the St. Clair Railway tunnel and hosts CN’s second largest “international” rail yard in Canada, carrying more freight than any other U.S. – Canada border rail crossing.

§ Surrounded by water, including the St. Lawrence Seaway system, Sarnia-Lambton is home to an international grain terminal as well as ship fuelling facilities.

§ Sarnia is home to the Chris Hadfield Airport with direct flights from Sarnia to Toronto’s Pearson International Airport. Within approximately one hour drive from Sarnia, is the Detroit International Airport, a Delta hub with access to all major U.S. cities and many International destinations, as well as London International Airport.

Infrastructure

Energy Electricity is the driver of industry and Sarnia-Lambton has an extensive power infrastructure. Our community has over 2,300 MW of natural gas based electrical generating capacity, 120 MW of solar capacity and another 420 MW of proposed wind generation capacity. An additional 300 MW natural gas electrical generation station is currently in the early stages of construction.

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Well known for pipelines that carry oil from western Canada, Sarnia-Lambton is also a hub for other pipeline infrastructure including those that supply natural gas. Union Gas’ Dawn facility is the largest underground natural gas storage facility in Canada, supplying much of the needs of eastern Canada.

Water Sarnia-Lambton has a large water distribution network that provides affordable water to communities throughout Lambton County. Lambton Area Water Supply (LAWS) is the main water distribution company, sourcing water from Lake Huron and distributing it to a number of municipalities in Lambton County (capacity of 181,844 m³/day). The Town of Petrolia operates their own water pipeline, storage facilities and water treatment plant in addition to LAWS.

Telecommunications In addition to traditional infrastructure, Lambton County has an extensive telecommunications infrastructure delivering data services via traditional cable and DSL infrastructure as well as fibre. Throughout Lambton County, Internet access exceeds 85% both in urban and rural areas. Some communities, including rural communities, have access to telecommunication services from multiple providers as well as fibre to the home services.

Sarnia-Lambton Demographics

Population Based on the 2011 Census the population of Sarnia-Lambton is 126,200 with a workforce (ages 15-64) of 82,875. Sarnia-Lambton’s population is augmented by surrounding communities such as Wallaceburg (10,185), which is located south of Sarnia-Lambton in Chatham-Kent, and Strathroy (14,221), located east of Sarnia-Lambton in neighbouring Middlesex County.

Education Attainment Sarnia-Lambton has a highly skilled work force with many local industries requiring individuals with engineering and technical backgrounds. Compared to the provincial average, Sarnia has a higher percentage of individuals with College credentials or Apprenticeship trade certificates. Lambton College, located in Sarnia, offers many technical courses and apprenticeship training for various trades including Chemical Production & Power Engineering, Construction, Electrical, Instrumentation & Control, Millwright and Welding. In addition to these technical programs, the college also offers a wide range of other diploma programs as well as joint Bachelor programs with Brock, Windsor, and Nipissing University. In addition to Lambton College there are several other educational institutions that are within close proximity to the community including Western University, University of Windsor, Waterloo University, Fanshawe College and St. Clair College.

Educational Attainment Sarnia-

Lambton Ontario University Certificate, Diploma or Degree 12% 23% College Diploma/Non-University Certificate or Diploma 24% 20% Apprenticeship or Trades Certificate 11% 7% High School Certificate or Diploma 32% 27% No Certificate or Degree 19% 19%

Statistics Canada. 2013. Lambton, CTY, Ontario (Code 3538) (table). National Household Survey (NHS) Profile. 2011.

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Competitive Tax Environment Ontario companies are able to take advantage of a very competitive tax structure in comparison to many other regions both within Canada and Internationally. The combined federal and provincial tax rate is 26.2% with a further tax reduction for companies involved in the manufacturing and processing industry resulting in a combined 25% tax rate. Property tax rates in Sarnia-Lambton are also very competitive with communities across Ontario. The 2012 BMA Municipal Tax Survey ranked both Sarnia and Lambton Shores below average for combined property tax for standard industrial sites per square footage. When comparing Sarnia to other parts of the province, property taxes for Standard Industrial space are 30% to 80% less than communities in the Greater Toronto Area (GTA). More significantly, when compared with a more rural location such as Lambton Shores these savings are 80% to 135% for GTA firms.

Existing Firm Profiles In addition to large multi-national petrochemical and refining complexes, there are a number of smaller manufacturing companies that leverage Sarnia-Lambton’s industrial infrastructure. The following are just some of the manufacturing companies that service local, North America, and International markets from Sarnia-Lambton.

Duststop Air Filters Inc. - www.duststopfilters.com Founded in 1981 by A.L (Sandy) Kennedy, Duststop Air Filters produces Canadian made air filters for residential and commercial forced air furnaces. Serving markets across North America, Duststop Air Filters is located in Petrolia, Ontario and employs 45 full time employees.

Penta TMR Incorporated - www.pentatmr.com Penta TMR was established in 1995, initially rebuilding all makes and models of feed mixers. In 2000, production of the first Penta vertical mixer began in their facility in Petrolia and today Penta produces a diverse array of feed mixers that are exported around the world including Australia and Europe.

Rock Technical Solutions - www.rocktechnicalsolutions.ca Rock Technical Solutions prides itself in metal fabrication and machining with the utmost in quality and workmanship. Rock can meet the most demanding customer's needs from the beginning of the design process to the final product. Their full service metal fabrication shop includes all aspects of a project including engineering, laser cutting, CNC machining as well as final installation.

Intertec Instrumentation - www.intertec.info Intertec Instrumentation recently expanded their Sarnia manufacturing facility after moving from Milton in 2007. The newly expanded operation enhances

Intertec’s ability to make custom field instrumentation shelters, cabinets and enclosures for the petrochemical industry. The company produces field cabinets and shelters, which are often used to house process analyzers in oil fields of Alberta as well as Saudi Arabia.

Armtec - www.armtec.com Armtec Limited is a manufacturer and distributor of steel and high-density polyethylene construction products for use in infrastructure, mining, forestry, industrial, residential, agricultural and municipal applications. From their manufacturing location in the town of Forest (part of Lambton Shores), Armtec manufactures and distributes a wide range of HDPE drainage tubing.

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Watford Roof Truss Ltd. Watford Roof Truss Ltd., (WRT) was established in 1972 and is one of the largest truss fabricators in Ontario. WRT is situated on ten acres of property, with 50,000 square feet of production facilities and a complete fleet maintenance shop. Well known for state of the art engineering and lean manufacturing expertise in the construction of engineered wood products, WRT is a leader in all SW Ontario markets from Windsor to Toronto.

Industrial Parks Lambton has several Industrial Parks located throughout the county as well as parcels of vacant land ready for development with prices starting at $10,000 / acre. Most sites have ready access to natural gas, municipal water, municipal sewers, high speed internet and are located on major highways for easy access to the US and Canadian markets. Many parks are municipally owned and have no development charges as well as expedited municipal development approvals.

Sarnia 402 Business Park § 85 acres (34.4 hectares) divisible to suit client § On Provincial Highway 402 § Five minutes to Ontario / Michigan border § Zoned for industry, office, and related uses § Services - electrical, natural gas, water, sanitary sewers, storm water management,

high speed internet § Owned by the City of Sarnia

Sarnia Business & Research Park § 202 acres (81.7 hectares) divisible to suite client § Located next to The Research Park and The Bioinnovation Centre § Two minutes drive to Provincial Highway 402 § Five minutes drive to Ontario / Michigan border § Zoned light industrial § Services - electrical, natural gas, water, sanitary sewers, high speed internet § Owned by the City of Sarnia

Forest Industrial Park East § 93 acres (37.6 hectares) divisible to suit client § On Hwy. 21 - 9.3 miles (15 km.) to Hwy 402; 30.4 miles (49 km.) to Ontario /

Michigan border § Zoned for a wide range of manufacturing, assembly and processing operations. § No building height restrictions including stack and tower height § Services - electrical, natural gas, water, sanitary sewers, high speed internet § Owned by the Municipality of Lambton Shores

St. Clair Industrial Park A fully serviced 200 acre development, the municipally-owned St. Clair Industrial Park is home to a growing number of diverse industries. § 90 acres (36.4 hectares) available § Rail access § On Highway 40 - 11.2 miles (18 km.) to Highway 402 via Highway 40, 9.9 miles (16

km.) to Ontario/Michigan border using alternate route § Zoned for industrial use

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§ Services - electrical, natural gas, water, sanitary sewers § Owned by the Township of St. Clair

Warwick Industrial Park § 39.5 acres (16 hectares) divisible to suite client, with additional 118.6 acres (48

hectares) for future industrial development § On County Road 79 - 1.86 miles (3 km.) to Hwy. 402; and approximately 30

minute drive to Ontario / Michigan border § Zoned for industrial use § Services - electrical, natural gas, water, sanitary sewers, high speed internet § Owned by Township of Warwick

Lifestyle Sarnia-Lambton is a great place to live, with an appealing mix of big city amenities and small town friendliness. § Sarnia-Lambton offers very affordable housing

o Average House $220,442 (SLREB – May 2014)

o 2 bedroom rental $792 (CMHC Spring 2014)

§ 40 miles of beautiful freshwater beaches § 60 recreational parks and conservation areas § Excellent health care system with a new

state-of-the-art hospital. § Wide variety of sports teams for all ages and

abilities § 20 golf courses, sailing and motor boating, scuba diving, fishing, wake boarding § Theatres, RBC Sports and Entertainment complex (OHL), new downtown art gallery § Host to many summer entertainment festivals including the annual Sarnia-Port Huron International Offshore

Powerboat Races Sarnia-Lambton is family-friendly and affordable.

Contact: Geoff Greening geoff@sarnialambton.on.ca The Sarnia-Lambton Economic Partnership Western Sarnia-Lambton Research Park Building 1050, Suite 100 1086 Modeland Road Sarnia ON Canada N7S 6L2 www.sarnialambton.on.ca 519-332-1820 / 1-800-972-7642

The Sarnia-Lambton Economic Partnership The staff of the Sarnia-Lambton Economic Partnership are ready and eager to assist with site location services such as accessing training incentives, assistance with permitting, temporary office space, and any other location assistance needed. At the Sarnia-Lambton Economic Partnership we are here to work with you in every way we can to make your site selection process as easy as possible.