Section 2: Economic events

Canada

Hydro-Quebec agreed to spend $4.7 billion for the assets and debts of New Brunswick Power to gain access to a transmission corridor to major US markets.

EnCana announced its Narrows Lake oilsands project that will produce up to 120,000 barrels of oil per day. Suncor will spend $120 million over the next year to double the capacity of its St. Clair ethanol plant to 400 million litres a year.

Vale Inco restarted partial production at its Sudbury nickel and copper mill as 3,500 employees remained on strike following a July 13 walkout.

TransCanada Corp announced it will build a $1.2 billion power plant in Southern Ontario to begin production in 2013.

Potash Corp will idle nearly half its mining capacity for potash and lay off up to 700 workers starting in November due to excess inventory.

Canwest Global Communications was granted creditor protection while it proceeds with restructuring plans.

Ford’s assembly plant in Oakville and 3,000 workers were idled at month end due to a parts shortage from a strike-affected supplier in India.

World

IBM boosted its stock buyback program by $5 billion (US) to $9.2 billion (US).

Union workers at Ford rejected an accord that included a six-year ban on some strikes, a wage freeze for new hires, a $1,000 bonus per employee and future product commitments at five assembly plants. Canadian workers accepted a similar deal.

Caterpillar began rehiring and will return a portion of its laid-off employees to jobs as demand increases. About 2,500 idled workers will be offered separation packages.

European financial services group, ING, was ordered by the European Commission to sell off large parts of its insurance business and its US banking arm as compensation for the state aid it received during the financial crisis.

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