In Montreal on February 25, the Canadian Industry Minister indicated that Canada continues to be a potential location for a carbon brakes factory by France's Safran, despite the imminent threat of 25% tariffs from U.S. President Donald Trump the following week. Safran is considering France, Canada, and the United States as prospective sites for the factory, with a decision expected in the first half of 2025.
Minister François-Philippe Champagne, in an interview with Reuters, highlighted that while tariffs present a immediate challenge, industries like aerospace have long investment cycles spanning decades. Despite concerns about potential U.S. tariffs, the Canadian dollar dropped to a near two-week low compared to the U.S. dollar on Tuesday.
Champagne reassured investors at the Chamber of Commerce of Metropolitan Montreal that despite short-term turbulence, Canada will maintain its attractiveness for investment. He also emphasized ongoing efforts to address U.S. border security concerns and convince President Trump of Canada's actions.
Safran, partially owned by the French government, had initially planned to open a carbon brake production factory in Lyon, France in 2019, but the project was delayed due to the pandemic and subsequent geopolitical events. Now exploring other options beyond France, Safran is looking for competitive energy prices, stable and clean energy sources like nuclear or hydraulic power, and a 10-year price visibility. Minister Champagne advocated for Quebec, with its aerospace expertise and competitive hydroelectric power, as an ideal location for Safran’s operations.