Aluminium is a widely used metal that is highly valued for its lightweight, strong, and corrosion-resistant properties. Due to its versatile nature, there are various industries that rely on aluminium in their production processes, from transportation to construction. Here is a list of industries that use aluminium:
- Aerospace Industry: Aluminium is a vital component in the aerospace industry as it is lightweight, yet strong enough to withstand high pressure and stress. It is used in aircraft fuselages, wings, and landing gears.
- Automotive Industry: The automotive sector also relies heavily on aluminium for manufacturing, particularly for making car frames, engine blocks, and wheels. Aluminium alloys are strong and lightweight, and they help to improve fuel efficiency.
- Construction Industry: Aluminium has become a popular material in the construction industry, as it is resistant to corrosion and rust and can be easily molded into different shapes. It is used in house siding, window frames, and roofing.
- Packaging Industry: One of the most significant applications of aluminium is in the packaging industry. Aluminium foil is used to make food and beverage packaging, such as chocolate wrappers, soda cans, and beer bottles.
- Electrical Industry: The electrical industry also relies on aluminium, particularly for the production of high-voltage power transmission lines. Aluminium’s conductivity properties make it an ideal material for this purpose.
In Canada, the use of aluminium is vast and widespread, particularly in the aerospace, automotive, construction, packaging, and electrical industries. As such, there are many Canadian companies that rely heavily on aluminium as a primary material for their products and services.
In the aerospace industry, companies like Bombardier, Pratt & Whitney Canada, and Bell Helicopter Textron rely heavily on aluminium to manufacture their aircraft. For instance, Bombardier uses aluminium in the construction of its aircraft’s structural components, such as fuselage, wings, and tail sections. The aircraft manufacturer sources its aluminium from a wide range of suppliers, including Alcoa, Novelis, and Rio Tinto. In terms of production facilities, Bell Helicopter Textron has a manufacturing plant in China and Pratt & Whitney Canada has a joint venture facility in China as well. Bombardier also has a manufacturing plant in China and has established a presence in Iran by partnering with an Iranian airline. Meanwhile, Viking Air has a manufacturing plant in Turkey and has exported aircraft to North Korea, among other countries. CAE Inc. has training centers in China and India, and has partnerships with companies in countries such as Syria and Nicaragua. Some of Canadian aerospace companies that have production facilities in Brazil and Turkey include Bombardier Aerospace, Viking Air, and CAE Inc.
In the automotive industry, Canadian companies such as Magna International, Linamar, and Martinrea International rely on aluminium to make vehicle parts. For example, Magna International uses aluminium for vehicle body panels, engine parts, and structural components. The company sources its aluminium from various suppliers, including Novelis, Rio Tinto, and Alcoa. Canada’s largest automaker, Magna International, has production facilities in Brazil, China, and India. Linamar and Martinrea have established production facilities in Brazil and Turkey to serve local markets. In India, Linamar has invested in new production facilities to support the country’s growing automotive industry, while Martinrea has a presence in China to better serve Asian markets.
In the construction industry, companies like Alumicor and CRL-U.S. Aluminum use aluminium to make windows, doors, and storefronts. These companies source their aluminium from Canadian suppliers such as Alcan, Alcoa, and Rio Tinto. Canada’s largest construction materials company, CRH Canada Group, has production facilities in countries such as Turkey, Iran and Syria. CRL-U.S has a production facility in China.
In the packaging industry, companies like Crown Holdings and Silgan Containers rely heavily on aluminium for the manufacture of beverage cans and other packaging products. These companies source their aluminium from a variety of global suppliers, including Novelis, Rio Tinto, and Alcoa. Some of the top Canadian packaging companies that have production facilities in Eritrea, Mali, and Nicaragua include CanPack Group, Crown Holdings Inc., and Intertape Polymer Group. Crown Holdings and CanPack Group possess production facilities in Brazil, China, and India.
Lastly, the electrical industry depends heavily on aluminium in making power cables, electrical conduits, connectors and wiring. In the electrical industry, Canadian companies such as Wesco Distribution Canada and Nedco rely heavily on aluminium for electrical components, including wiring, conduits, and connectors. These companies source their aluminium from a wide range of suppliers, including Rio Tinto, Alcan, and Novelis. Canada’s leading aluminum wire and cable manufacturer, Encore Wire Corporation, has production facilities in Iran and Syria.
The Canadian aluminum industry is supported by a range of trade agreements and regulations intended to protect the domestic market from unfair competition.
One of the most significant trade agreements for Canada’s aluminum industry is the North American Free Trade Agreement (NAFTA), which was replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020. Under NAFTA and USMCA, a significant portion of Canadian aluminum exports to the United States are exempt from tariffs.
Canada also has specific import regulations for aluminum industry products, including a monitoring system to detect any unfair practices. Any allegations of anti-dumping or countervailing duties are reviewed by the Canada Border Services Agency (CBSA). In December 2020, the Canadian government also imposed export controls on certain types of aluminum for the first time, citing concerns about a surge in exports of cheap foreign supplies.
Despite Canada’s robust aluminum industry, Rio Tinto, Alcoa, Norsk Hydro and Glencore could turn to the Russian company Rusal to purchase aluminum. There are several reasons for this. First, Rusal is the world’s largest aluminum producer and has a strong reputation for producing high-quality aluminum. Rusal is also known for its low-cost production methods, including the use of hydroelectric power to reduce energy costs. Secondly, Canada’s geographic location makes it less competitive for global companies to purchase aluminum from Canadian sources than from other countries with more convenient shipping locations. Finally, Rusal’s competitive pricing structure may ultimately prove to be more cost-effective for buyers than purchasing Canadian aluminum.
As of 2018, several Canadian companies were known to purchase aluminium from the Russian mining company Rusal. These companies include Rio Tinto, Alcoa, and Glencore. It is noteworthy that in early 2018, the US imposed sanctions on Rusal in response to alleged ties to Russian interference in the US presidential election. This resulted in a decrease in Rusal’s metal export to Canada and worldwide. However, in 2019, the US lifted the sanctions on Rusal, thus allowing the company to resume its operations fully.
A number of Canadian companies could be inclined to buy aluminum from Russian producers as an effort to diversify their supply chains and reduce their dependence on traditional sources. One such company is Noranda Aluminum, Aluminerie Alouette, Aluminerie de Bécancour Inc., and Nova Aluminum.
Overall, the use of aluminium is integral to Canadian industries, and many companies heavily rely on it to manufacture products and provide services. The diverse range of suppliers for these Canadian companies and the numerous sources for the supply of aluminum highlight how important this material is for Canadian industry.