Team Ontario 2001: An Overview
Premier Mike Harris will lead a Trade Team Ontario delegation of
around 150 companies on the 10-day Team Canada mission that departs
for China on February 9, returning to Canada on February 18.
The Mission will begin with three days in Beijing, moving on to
Shanghai on February 14, before launching the last leg of the
mission in Hong Kong on February 16.
China is Ontario’s fourth largest export market. Ontario’s
exports to China have grown dramatically since 1998, fuelled
primarily by the automotive sector. That year, the province’s
exports to China were worth $286 million and they nearly doubled to
$476.5 million in 1999.
As a result of AECL’s project at Qinshan and a surge in auto
parts exports by General Motors, Ontario exports reached $662
million in the first three-quarters of 2000 -- a 209 per cent
increase over the same period in 1999. Total combined Ontario
exports to China and Hong Kong were $1.076 billion during this
Growth Potential for Ontario Companies
China’s rapid growth presents excellent opportunities for Ontario
companies in introducing Ontario expertise and products and services
to this expanding market. The recent invitation to China to join the
World Trade Organization also presents positive conditions for
The sectors that provide the strongest potential for increased
sales to the Chinese market include auto parts, machinery,
construction materials, environmental related equipment, and
biotech/pharmaceutical products. In recent years, Ontario exporters
to China have experienced success in exporting synthetic rubber,
transmission apparatus and electronic circuits.
Since 1978, China has successfully implemented major economic
reforms designed to stimulate growth and improve living standards
within a more market-oriented economic framework. As a result, gross
domestic product (GDP) has more than quadrupled and industrial
growth has posted major gains.
China is extremely rich in coal, iron ore and other minerals. It
also has enormous reserves of natural gas and an ever-expanding
hydroelectric power output.
China is currently undergoing a decentralization of purchasing
and procurement power. Hong Kong became a Special Administrative
Region of China in 1997.
Ontario's Global Strategy
Last December, the Harris government launched a global marketing
strategy to win more jobs for Ontario in the 21st
century. The strategy will help diversify our trading partnerships
beyond the North American market.
The three-part strategy includes an expansion of trade
development. Led by Ontario Exports Inc., trade development will be
expanded, both domestically and on the ground in key offshore
markets, to provide more support for small and medium-sized Ontario
exporters. To attract more investment in Ontario companies, Market
Ontario's international sales team will be strengthened and will
work more target markets. The government will promote Ontario by
opening new trade desks in five key foreign cities.
Team Ontario 2001: Participating Companies
Around 150 Ontario companies are participating in the Team Canada
Trade Mission to China. They represent a wide cross-section of
Ontario’s economy with experience in telecommunications, information
technology, energy, environmental technologies, education, health
care, transportation and construction.
These companies have a variety of objectives:
- establishing first contacts with potential buyers;
- learning more about the Chinese market;
- developing agreements with new partners; and
- building on existing ventures.
New and expanded contracts create jobs in Ontario, through
increased manufacturing of Ontario-made components, the transfer of
innovative technology and the introduction of Ontario products and
services directly into the Chinese market. Here are a few
Advanced Material Resources Ltd. (AMR)
- Toronto's AMR has a controlling interest in two Chinese
producers, making it a world leader in rare earths.
- Rare earths are elements that are mined because of their
density, high melting points and ability to conduct heat and
electricity. They are used in a variety of products, including
computer hard drives, fax machines, circuit boards, batteries,
fluorescent bulbs and eyeglasses. Most of the known sources of
rare earths are found in China.
- AMR has tripled output at its Chinese plants, winning 10 per
cent of the worldwide market in its product lines. The firm's
rapid growth will create jobs in Ontario, especially for
consultants, as AMR incorporates western business practices into
its Chinese operations.
- On December 14, 2000, Toronto’s Canaboard Inc. and the
Municipality of Zhangqiu entered into a US$100 million contract
and joint venture.
- This joint venture company will build and operate a large
strawboard manufacturing plant in Zhangqiu. The company believes
China has the potential to be a major market for strawboard.
- On this mission, Canaboard will explore ways to co-operate
with the government, scout production facilities and factories and
look for possible joint venture partners.
- Based in London, Ontario, Cyberteks Design is an
internationally recognized dynamic interactive design studio,
e-commerce web hosting and on-line marketing company.
- Its President, CEO and Chief Creative Director is 12-year old
Keith Peiris. He is an award winning web designer who founded the
company in June 1999. Specialties include work in Macromedia
Flash, Fireworks and Freehand.
- The company has seven sales offices in the United States and
its clients include Interep, that country's leading radio
advertising agency. Peiris hopes to diversify his company's
exports beyond the North American market.
GAO Research Inc.
- Toronto’s GAO Research Inc. is a leading provider of
communications software to telecom and electronics companies
- It employs 50 specialized engineers. GAO works with industry
leaders in communications DSP hardware, and micro-processors such
as Texas Instruments, Intel, Lucent Technologies, Philips and
- The firm is now licensed to provide software to Personal
Digital Assistant manufacturers in China and will be setting up a
sales office in Beijing. GAO expects this expansion to create an
additional 20 jobs in Ontario and the company sees more potential
for job creation in the long term.
- Nortel Networks of Brampton is a global internet and
communications leader, with capabilities spanning optical,
wireless, local internet and e-business.
- The company was recently awarded a multi-million dollar
contract from Qingdao Telecom and Hebei Telecom, regional
operators of China Telecom. As well, Henan Telecom has selected
Nortel to supply a backbone network across the province,
strengthening Nortel's growing leadership position in China. It is
expected to be operational in April, bringing the power and
bandwidth of the optical Internet to customers in the Henan
province through high-quality voice, data and leased bandwidth
services. It will also serve as part of China Telecom's national
high-capacity broadband network.
- Nortel currently builds the majority of China's 10
Royal Group Technologies Limited
- Located in Woodbridge, Royal Group Technologies Ltd.
manufactures home improvement, consumer and construction products
and is one of North America's largest manufacturers of vinyl
- The company has been involved in the construction of
residential housing in China since the mid 1990s. In 1998,
production began at an extrusion plant in the Songjiang district
- Royal Group’s companies in Ontario manufacture various raw
materials used in the production process at the Chinese plant.
Roughly 20 per cent of the components for construction projects in
China that utilize the system are manufactured here.
- Royal Group is exploring opportunities in China to sell other
Royal Building products and to distribute building products
manufactured by other Ontario based firms.
Whiting Equipment Canada Inc.
- Whiting Equipment Canada Inc. of Welland designs and
manufactures heavy industrial equipment.
- A recent joint venture between Whiting Equipment Canada Inc.’s
wholly owned subsidiary NAMAG (L) Corporation and Zhejiang
Tongxiang Coal Mine Machinery Plant resulted in the forming of
Zhejian NAMAG Equipment Manufacturing Co. Ltd. The plant is
located in Tongxiang City. The purpose of the joint venture is to
produce and sell heavy weldments (such as components for
metallurgical processes and plants, electric arc furnaces, cranes,
and caster components) manufactured in China, using North American
- In addition, Whiting Equipment Canada Inc. and China's
BAOSTEEL, the world’s third largest steel company, have agreed to
form a consortium to bid on the largest project in BAOSTEEL’s