FDI Report 2020 — Modern FDI in Canada

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Modern FDI in Canada

Choosing Canada for the long term

Increasingly, global investors look not only to invest, but to put down roots in Canadian communities. Over the past 10 years, we’ve seen a shift in foreign companies coming to Canada to build and expand permanently, rather than simply to recruit talent. Modern FDI in Canada includes mergers and acquisitions (M&As), which allow foreign investors to build on a Canadian company’s market experience, global connections and skilled workforce. In turn, they bring technologies, efficiencies and jobs to Canadians for generations to come.

More mergers and acquisitions

In 2020, M&As represented the largest portion of confirmed FDI flows at 49.3%, a 6.4% increase over the 10-year average. Other flows, including greenfield investments (new projects and expansions) and financial transactions, such as loans between foreign headquarters and their Canadian affiliates, accounted for 35.9%. Reinvested earnings made up the remaining 14.7%.

Greater announced spending

Total capital expenditure announced across all FDI projects was 43.1% higher in 2020 compared to 2019. As there were fewer projects in 2020, the numbers show that investors announced larger scale investments in Canada in 2020 – for an average of $68 million per project.

The success files

Industry: Mining

Total investment: $500 million

Source country: United States

Location: St. Lawrence, Newfoundland and Labrador

A group of workers installing solar panels on a roof — Workers installing solar panels

Canada Fluorspar Inc.’s (CFI) investment in developing and operating a mine of fluorspar deposits will ensure that this strategic mineral is exported worldwide. Its uses include refrigerants, polymers, lithium-ion batteries, solar panels, electronic and computer equipment, high-strength glass, aluminum and steel.

CFI’s investment created hundreds of local construction jobs. The Government of Canada provided $5 million in support. CFI employs approximately 270 in its operations today.

“Canadian fluorspar is at the heart of the world’s most innovative technologies. We’re proud of our integral role in developing technologies that make life better. We are committed to the communities in which we live and work.”

CFI