July 24, 2015—The governments of Canada and Ontario are providing contributions of up to $30 million each to support a technology adaption and implementation project at Essar Steel Algoma Inc. in Northern Ontario.
Funding will be used for the initiatives outlined below:
- Upgrades in the state-of-the-art Direct Strip Production Complex, which will result in improved product quality, higher-value steel grades and increased processing speed;
- Adoption of enhanced automation technology in the Plate and Strip Hot Mill Complex, which will improve overall productivity and reliability and reduce energy consumption;
- Installation of a new steel refining station, which will enable research, development and production of high-value advanced steel grades.
These changes will allow the company to produce a wider range of steel grades, increase steel quality, and increase production levels to meet Canadian demand, which is largely dependent on imports.
Overall, Essar Steel Algoma Inc. is investing more than $240 million in a Plant Modernization and Expansion Project to modernize its steel making facility through innovative equipment and processes. These activities will raise plant efficiency to the highest industry standard, allowing the company to compete both on cost and quality of product on a global scale. Improving plant efficiencies will also reduce its carbon footprint.
The Government of Canada's $30-million repayable contribution, through the Advanced Manufacturing Fund (AMF), is the first AMF investment in Northern Ontario. AMF is delivered province-wide by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) with an allocation of $200 million over five years. The Fund was launched to support manufacturers as they work to increase competitiveness, invest in innovation and boost productivity across Ontario.
The Ontario government is investing $30 million towards the project through the Northern Ontario Heritage Fund Corporation (NOHFC). The investment supports long-term sustainability and will help to ensure Essar Steel Algoma Inc. continues to support job growth with more than 200 new and good paying jobs, and a stronger economy for Sault Ste. Marie. Investing in business expansion and job creation in the North is part of the Government of Ontario's Growth Plan for Northern Ontario.
Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario. As a fully integrated steel producer, the company derives its revenues primarily from the manufacture and sale of hot and cold rolled steel products including sheet and plate.
Founded in 1901 as Algoma Steel, the company was acquired in June 2007 by Essar Steel Holdings Limited. Its products are sold to customers in the automotive, light manufacturing, construction, shipbuilding, energy, mining and steel distribution industries.
