Quebec attracts record $13 billion in foreign direct investment

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Quebec attracted a record $13 billion in foreign direct investment in the fiscal year ended March 31, more than doubling last year’s record of $6 billion, and five times more than in 2018-2019,  Investissement Québec announced Thursday.

The provincial investment and financing agency also said it helped Quebec exporters book $5.1 billion of foreign sales in the most recent year, a 64 per cent jump from 2021-22.

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Much of the jump in foreign investments in the province due to Swedish battery manufacturer Northvolt’s decision to build a $7 billion plant in Quebec. Announced in late September, Premier François Legault said it was the largest private manufacturing investment in the province’s history. Quebec committed $2.9 billion for the project, while Ottawa chipped in $4.4 billion.

“The record investment figures demonstrate the attractiveness of Quebec and the impetus that our government has given to the economy. I want to congratulate Investissement Québec’s international team for its efforts,” Quebec Economy Minister Pierre Fitzgibbon said at the announcement at Investissement Québec headquarters in downtown Montreal.

Since being given a wider mandate in 2019, Investissement Québec now incorporates the former regional offices of the Economy Ministry — as well as the Centre de recherche industrielle du Québec — to make it easier for entrepreneurs to get advice and financing from the same location. Its mandate includes boosting exports, attracting more foreign capital and generating greater wealth for the province.

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On the foreign market, 59 per cent of fixed sales were conducted in the United States, 31 per cent in Europe, Africa, the Middle East, Asia and Latin America, and 10 per cent elsewhere in Canada, similar to last year’s figures. Thus $2.1 billion in sales were conducted outside of the U.S. market.

Investissement Quebec International organized more than 9,000 business meetings between Quebec entrepreneurs and foreign buyers or business partners in the last year.

At the same time, seeking out foreign investments and supporting subsidiaries of foreign companies resulted in 109 projects generating a total of $13.1 billion in investments in Quebec, compared to $2.3 billion for the 2018-2019 fiscal year.

While investments linked to electric battery production and natural resources accounted for a significant part of the total, the results in other sectors were comparable to the averages attained over the last 5 years, the agency said.

Foreign direct investment in the Montreal area slumped 24 per cent last year as technology companies scaled back expansion plans and some industrial projects were scrapped due to a lack of available power, Montreal International, the city’s non-profit investment promotion agency, reported in February.

More details to come.

rbruemmer@postmedia.com

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