In 1998-2002 Mission Accomplished for SGF
$10.6 billion in investments in five years; 56,000 jobs created
Montréal, February 23, 2003 - Claude Blanchet, Chair of the Board, President and Chief Executive Officer of SGF, today presented the results of SGF’s 1998-2002 five-year plan. "Five years ago, when the Government of Québec approved SGF’s development plan, the investment objectives were in the order of $10 billion, with $2 billion coming from SGF’s own equity and $8 billion from the private sector. We also planned to invest in 125 projects and create 75,000 direct and indirect jobs. Today we can say "mission accomplished"."
Although SGF hoped to create 75,000 jobs between 1998 and 2002, the 56,000 jobs that were created are equivalent to 14% of the jobs created on average in Québec during this period. Also, SGF’s investments represent the equivalent of 35% of capital expenditures in the manufacturing sector in Québec over the same period. These investments in 167 private sector companies represent an added value of $7 billion in Québec’s GDP, or the equivalent of an average growth rate in the GDP of 3.7% rather than 3%. Sixty percent of SGF’s investments were with partners from outside Québec.
Forty-four percent of the jobs created are in high knowledge sectors, 48% in average knowledge and only 8% in low knowledge sectors. Also, in the past five years, there has been an appreciable acceleration in SGF’s investments. From $397 million invested with partners in 1998, $3.085 billion was invested in 2002.
In addition, the investments made by SGF and its partners were spread across Quebec: compared to 40% in Greater Montreal, Laval and the Québec City area, 56% went to the regions: 29% in resource regions, 14% in central regions and 13% generally, i.e., in companies operating in more than one region of Québec.
"During the five years in question, Blanchet added, SGF’s main mission, namely to develop the Québec economy, was fully achieved and even exceeded. About 30% of the capital invested is still in the development phase. Therefore, it will only bear full fruit in the next three or four years because either the plants are being constructed or the companies concerned have only been in operation for a year or two."
Between 1997 and 2001, SGF’s accounting rate of return was 5.4%. The return for 2002 will only be finally determined next June when the annual report is released.
The mission of the Société générale de financement du Québec (SGF) is to carry out economic development projects in cooperation with partners and in accordance with accepted requirements for profitability. As of December 31, 2001, SGF’s consolidated assets totaled over $3 billion. SGF has 65 international partners operating in Québec. (sgfqc.com)
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