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CASF NEWS



           As a result of changes to our competitiveness
           in the global marketplace due to increases in carbon               For instance, the tradable basic chemical
                                                                              manufacturing sector would see a produc-
           pricing mechanisms, we have lost business to                       tion cost increase of 5.7 percent in the short
           competitors in the U.S., Mexico and China, which                   term. Similarly, a highly tradable primary
                                                                              metal manufacturing operation would face a
           translates directly into lost jobs.                                3.6 percent increase in production cost.
                                                                              Competitiveness pressures will also be sig-
                                                                              nificant for oil and gas extraction and pulp,
                                                                              paper, and paperboard mills, among others.”
           DYNAMIX Blending Technology, Service and Value                     government has designed an output-based
                                                                                In response to these concerns, the federal
                                                                              pricing system (OBPS) with the intent of
                              Dynamix is one of North America’s fastest growing manufacturer   limiting the harm to sectors exposed to trade
                              and supplier of metal finishing chemistry. “The philosophy at    and competitiveness pressures. Thus far,
                              Dynamix is simple - enhance our customers’ performance and    the surface finishing industry has been ex-
                              profitability, while dealing with all of our partners in an open and   cluded. Why is this?  Our industry is heavily
                              honest forum.”                                  exposed to foreign competition in the U.S.,
                              The primary focus of Dynamix is the design and manufacture    Mexico and China, where such a tax does not
                              of specialty chemicals for the metal finishing industry, covering    exist. We are at risk.
                              all aspects of metal finishing from anodizing to zinc plating.    As one large surface finishing shop in
                              Toll blending, packaging and distribution of custom formulated    Ontario recently commented on the poten-
                              products are also available.                    tial impact of the tax:
                              We offer a service that encompasses all of our values with a highly   “As a result of changes to our competitive-
                              skilled and motivated team. The laboratory at Dynamix is well   ness in the global marketplace due to
                              equipped and able to provide analytical solutions specific to a    increases in carbon pricing mechanisms, we
                              particular sector of industry and/or customer. Products are designed   have lost business to competitors in the U.S.,
                              at Dynamix to provide unsurpassed performance and solution    Mexico and China, which translates directly
                              economy. Superior chemistry is only the beginning, as the company   into lost jobs. Quoting from the 2020 Orr and
                              realizes that technical and application knowledge are just as vital to   Boss Industrial Impact Study undertaken
                              the metal finishers’ success.                   with sponsorship and funding from CASF, 57
                              Let Dynamix demonstrate how we can maximize your plating    percent of this industry sector is based in On-
                              chemistry productivity by providing the most robust chemical    tario, which currently exposes them to the
                              processes available.                            pricing increases currently in place under
                                                                              the federal Output Based Pricing System
                              FUNCTIONAL COATINGS   DECORATIVE COATINGS       (OBPS) program. With the announcements
                              • Anodizing Chemistry   • Copper/Nickel/Chrome Processes.   from the federal government, under the new
                              • Black Oxide Processes.      • Copper and Brass Processes.   Climate Plan strategy, it is posited that CO2
                              • Conversion Coatings.   • Bright/Dull/Satin Nickel Processes.   emissions pricing between 2022 and 2030
                              • Copper Processes.   • Tin Processes.          will increase from $50 per tonne CO2 emis-
                              • Electroless Nickel Processes.   • Antiquing Processes.   sions to $170 per tonne of CO2 emissions – a
                              • Electropolishing Processes.                   340 percent increase!” (As a side note, Que-
                              • Hard Chromium Processes.   SPECIALTY PRODUCTS   bec’s cap-and-trade plan, where CO2
                              • Phosphate and Phosphate    • General purpose and heavy    emitters must buy carbon credits, limits
                               free coatings.        - duty cleaners for all substrates    them to a carbon price of just $17 per metric
                              • Tin Processes.       and applications.        tonne, not the current $50 for 2022 rising to
                              • Zinc and Zinc alloys, Chromates   • Metal strippers.   $170 per tonne in 2030 noted above in pre-
                               and Topcoats.        • Paint strippers for use on ferrous   dominantly Ontario). This increase affects
                                                     and non-ferrous substrates.
                                                                              our sector’s ability to be competitive inter-
                                                                              nationally as many other jurisdictions, some
                                                                              elsewhere in Canada but many globally, do
              QAS INTERNATIONAL
              ISO 9001:2015                                                   not have carbon emission reduction pro-
             REGISTERED COMPANY
               Certificate No. CAN1641                                        grams in place, or have programs that are
                                                 91 Esna Park Drive, Unit #7
                                                                              very much less onerous financially. The
                                                 Markham, Ontario L3R 2S2     Canadian Surface Finishing industry has
                                                    Phone: (905) 477-0900     been advocating for some time for our
                                                                              sector, (NAICS Code 3328 – North Ameri-
                                    www.dynamix-inc.com                       can Industry Classification System 2017 ver.
                                                                              2.0 – “Coating, engraving, cold and heat
                                                                              treating & allied activities”), to be approved
         16            CANADIAN FINISHING & COATINGS MANUFACTURING                                                                                                 MARCH/APRIL 2021
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