By Allison Lampert
MONTREAL (Reuters) – Canada remains a contender for a carbon brakes factory from France’s Safran, the Canadian industry minister said on Tuesday, despite the looming threat of 25% tariffs next week from U.S. President Donald Trump.
The jet engine maker has shortlisted France, Canada and the United States as possible factory sites, with a decision expected during the first half of 2025.
“When people look at tariffs they see that as a short-term challenge,” minister Francois-Philippe Champagne said in an interview with Reuters.
“But you know, in the aerospace industry like in many other heavy industries, the investment cycle is usually around more than a decade or two.”
The Canadian dollar on Tuesday weakened to a near two-week low against its U.S. counterpart as investors worried that 25% U.S. trade tariffs will be implemented against Canada and Mexico.
Earlier in the day Champagne tried to drum up investment confidence, telling the Chamber of Commerce of Metropolitan Montreal that Canada will remain attractive and attract investment, despite “turbulence in the short term.”
He told reporters that discussions would continue this week to convince Trump that Canada has done enough to address U.S. concerns over border security.
Jet engine maker Safran, 11% owned by the French government, announced plans in 2019 to open a new factory for energy-intensive carbon brake production in Lyon, France.
The idea fell victim to the pandemic in 2020 and in 2022, plans to take advantage of a rebound in air travel by renewing the project were postponed for another 18-24 months as European energy prices soared following Russia’s invasion of Ukraine.
Safran is now looking at other options in addition to France.
The aerospace supplier has said it would look at competitive energy prices, stable and clean supplies based on nuclear or hydraulic power and a 10-year visibility on prices.
Champagne said he has made a case to Safran for Canada’s aerospace hub Quebec which has industry expertise and where hydroelectric power is competitive.
(Reporting By Allison Lampert in Montreal; Editing by Alistair Bell)
