Of debate has been the state of Ontario’s chemical industry. Recent years in the province has seen the decline of general manufacturing activity which has included the chemical and its allied sectors. Frequent chemical plant closure announcements were numerous as were the reasons for its decline such as uncompetitive power rates, lack of chemical feedstock and the appreciating value of the Canadian dollar.

According to Statistics Canada, Ontario’s chemical manufacturing sales revenue has been stagnant. In the last ten years its peak was in 2005 when sales reached $23.5 billion. Sales have somewhat recovered since the severe recession which caused sales to drop to $18.9 billion in 2009. Still, Ontario’s chemical industry is a formidable one, with sales totaling over $20.4 billion in 2011, it represents 8% of all Ontario manufacturing shipments and 43% of Canadian chemical industry shipments. The industry is the six largest employer in the Ontario manufacturing sector. More than half of the chemical industry employment is in Ontario.

Things are looking up for Ontario with the development and emergence of the green chemistry industry. The burgeoning liquids-rich shale gas industry in North America is increasing feedstock supply to Sarnia’s chemical valley and facilitating significant new future growth for the chemical industry.