PyroGenesis manufacturing locations bypass proposed US tariffs

February 5, 2025

PyroGenesis believes the proposed US tariffs imposed on Canadian products should have little to no direct negative impact on the company (Courtesy PyroGenesis Inc)
PyroGenesis believes the proposed US tariffs imposed on Canadian products should have little to no direct negative impact on the company (Courtesy PyroGenesis Inc)

PyroGenesis Inc, Montreal, Canada, has issued a response to investor questions about the proposed US tariffs imposed on Canadian products.

While any potential tariff implementation has been delayed by a month, PyroGenesis management has stated that their implementation should have little to no direct negative impact on the company’s bottom line.

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This is made likely by the fact that the company manufactures and and assembles many key systems and most components used therein outside of Canada, including its Drosrite aluminium metal dross recovery systems, which are produced in the US.

Another factor will be that – outside of the US defence sector, which often sees tariffs waived – most of PyroGenesis’s clients are outside of the US. The majority of its contracts are in US Dollars or Euros, which could lead to a positive impact on the company considering the current exchange rate environment.

“I am confident that any imposed tariffs will have little to no direct negative impact on PyroGenesis,” said P Peter Pascali, president and CEO of PyroGenesis. “To the contrary, we look forward to seeing how the Trump administration’s policy positions (which are geared to speed up capital projects, stir innovation, increase overall capacity of the energy grid, and lower energy costs) evolve into concrete initiatives.

“We expect these initiatives to be highly beneficial for companies like ours that (i) already have a presence in the United States, (ii) supply heavy industry with the high-temperature electricity-based solutions needed to modernise, optimise, and compete, and (iii) can manufacture and assemble in zones not affected by the threatened tariffs. In short, we believe that these initiatives in general complement PyroGenesis’ overall business strategy,” Pascali concluded.

www.pyrogenesis.com

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