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Economic events in December CanadaAlmost half of Ford’s US blue-collar workforce (38,000 workers) accepted voluntary buyout packages. Ford expects to cut its vehicle production in North America to 3.6 million units by the end of 2008, down 26% from 2005. DaimlerChrysler stopped production at some of its assembly plants for up to 4 weeks to reduce inventory levels, and will cut 800 jobs at its Freightliner truck plant in St. Thomas. Navistar will lay off 700 workers at its heavy truck plant in Chatham after new emissions standards take effect on January 1. Aluminium-producer Alcan plans to build a $550 million (US) smelter in Quebec. Dupont will cut 1,500 jobs by consolidating manufacturing in its agriculture and nutrition divisions. Synenco Energy announced that costs for its Northern Lights oil-sands project have more than doubled to $4.4 billion due to rising prices for skilled labour and materials. Suncor announced a 40 to 50 day shutdown of its oil sands facility for maintenance and to connect components of an upgrader expansion. Petro-Canada plans to increase production and capital spending in 2007 by 15%. EnCana will cut capital spending by 6% to $5.9 billion (US), while increasing natural gas production. Pork-processor Olymel LP will close two plants in Quebec and, along with Big Sky Farms, is withdrawing from a consortium that had planned to build a $200 million hog facility in Winnipeg. Maple Leaf Foods earlier announced it would close or sell several plants and consolidate its fresh pork processing in Brandon, Manitoba. The softwood lumber agreement passed into law. Under the deal, regions had the option of accepting an export tax of up to 15% or accepting quotas on the amount they sell to the US in return for a much smaller export levy. Ontario and Quebec opted for quotas, while BC agreed to the export tax. Storms blasted Vancouver Island and the Lower Mainland causing widespread damage and power outages. WorldThe European Central Bank raised its key interest rate by a quarter-point to a five-year high of 5%.Egypt plans to spend $5 billion (US) over five years to expand the Suez Canal to speed up Middle East oil shipments to Europe. Russia’s Gazprom agreed to pay $7.45 billion (US) for majority control in Sakhalin-2, a gas project led by Royal Dutch Shell. TransCanada Corp bought $3.4 billion of assets from El Paso Corp, mostly natural gas storage facilities in Michigan. |
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