Ideal Can, a Quebec-based food can manufacturer, is expanding its operations in response to the impact of U.S. tariffs on Canada’s steel and aluminum industries. The company, headquartered in Saint-Apollinaire, Quebec, will be increasing its production capacity in Ontario next year. This move will bring it closer to key clients such as Sun-Brite Foods, Nortera, and Weil’s Food Processing, while also establishing a significant presence in a vital food-processing hub.
Founded in 2008, Ideal Can initially imported cans from China for the Canadian food sector. Over the years, it transitioned to domestic manufacturing, starting with cans for maple syrup and later expanding to various other products. CEO Erick Vachon highlighted the significance of using Canadian steel, alongside Canadian food and a Canadian can maker, to gain independence from American production.
As the trade tensions between Canada and the U.S. persist, Ideal Can is among several local businesses seeking to relocate their supply chains back to Canada, aligning with the Buy Canadian initiative. While some experts view this shift as a necessity due to the trade war, others question its economic viability.
Ideal Can’s forthcoming plant in Chatham, set to open in January at the former Crown Metal Processing facility, will house six new production lines. This expansion will boost the company’s workforce from around 35 employees to 100 within two years, with an investment of $100 million. By 2028, the factory is projected to manufacture approximately 1.2 billion cans annually, surpassing the output of its Quebec facility, which currently produces 800 million cans yearly.
In addition to its expansion, Ideal Can is reshoring a segment of its supply chain that was previously reliant on U.S. operations. A Hamilton plant, slated to open in April, will handle cutting and varnishing steel sheets to supply existing production sites in Chatham and Saint-Apollinaire.
Positioning itself as the sole all-Canadian food can manufacturer, Ideal Can reported a doubling in sales following the imposition of tariffs in March. The company’s strategic realignment was primarily catalyzed by the steel and aluminum tariffs imposed by U.S. President Donald Trump earlier this year. This move has been beneficial for Ideal Can’s client, Sprague Foods, a Canadian organic food company that has faced escalating costs from U.S. suppliers.
Despite the advantages of reshoring segments of the supply chain, some experts raise concerns about the economic feasibility of the move. Jean-Charles Cachon, a management professor, emphasized that the declining value of the Canadian dollar could impact the cost-effectiveness of relocating manufacturing operations back to Canada. The complexities of steel production and the diverse product requirements further complicate the decision-making process for companies considering reshoring initiatives.
