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Preferrably in the states where there is high or any unemployment. To build factories on your own, you need a party in power wiht State capitalism as its economic policy. As Canada you should be a Monarchy, thus you can appoint the goverment at will. Usually its the Reactionary one, which also usually features Jingoism (also useful).
Tip : Hold shift and click on the "+" icon on a factory @Production panel will cause all factories to upgrade that have 80+% employment.