Province of Ontario and the Government of Canada will both throw in $30 million for a total of $60 million invested.
Ontario is investing $30 million at Essar Steel Algoma Inc. to improve operational efficiency, productivity and global competitiveness in addition to creating 200 new well-paying jobs at its integrated steel mill in Sault Ste. Marie, announced David Orazietti, MPP today.
“I am extremely pleased to announce that after many months of work, we are providing the largest grant in decades from any level of government in the amount of $30 million to strengthen our city’s largest employer and support a $240 million capital modernization plan that will create more than 200 new jobs and serve to protect more than 2500 direct jobs and more than 5000 indirect jobs,” said Orazietti. “This massive investment will help to ensure Essar Steel Algoma remains competitive for years to come, while building industry leading capacities to produce a broader range of products as well as allowing for the increase in total steel output.”
The funding, announced today will enable Essar Steel Algoma to adopt world-class technologies that will improve its production processes, and increase the range and quality of its steel sheet and steel plate products. This includes improving the company’s signature technology at its Direct Strip Production Complex, the only facility in Canada that converts raw steel directly into steel sheet products.
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 improved processing speed
· Adoption of enhanced automation technology in the Plate and Strip Hot Mill Complex, which will improve overall productivity and reduce facility downtime and energy consumption
· Installation of a new steel refining station, which will enable research, development and production of high-value advanced steel grades
“This investment makes it possible for Essar Steel Algoma to expand our product offering and satisfy emerging market opportunities, improving our productivity, making us more competitive and ultimately more sustainable. That will ensure we have a long-term future in Sault Ste. Marie, producing advanced steel and maintaining vital jobs that make our community stronger.” said, Kalyan Ghosh, CEO, Essar Steel Algoma Inc.
These activities are part of a more than $240-million Plant Optimization and Expansion project being undertaken by the company. The project, anticipated to be completed by 2018, will ultimately lead to the development of more transformative, unique-in-Canada products, while providing high-quality jobs at the steelmaker’s facilities in Sault Ste. Marie and throughout its supply chain.
“Our Government is committed to ensuring Ontario’s steel sector remains competitive in today’s challenging global market,” said Minister Michael Gravelle, Ontario Minister of Northern Development and Mines. “We recognize Essar is a significant contributor to Northern Ontario’s economy, and a major private sector employer in steel manufacturing. This $30-million investment is proof of our continued support of the northern economy, including the steel industry in the North.”
The Government of Ontario’s investment is being delivered by the Ministry of Northern Development and Mines and the Northern Ontario Heritage Fund Corporation (NOHFC).
The funding, announced today by federal and provincial officials, will enable Essar Steel Algoma Inc. to adopt world-class technologies that will improve its production processes, and increase the range and quality of its steel sheet and steel plate products. This includes improving the company’s signature technology at its Direct Strip Production Complex, the only facility in Canada that converts liquid steel directly into steel coils.
“Since its foundation, Essar Steel Algoma Inc. has been an economic driver for Sault Ste. Marie and northern Ontario. Our Government is pleased to support a company that is committed to investing in its future, in the future of this community and this region.” said, The Honourable Gary Goodyear, Minister of State for FedDev Ontario.
As the number one employer in the area, supporting Essar Steel is also an investment in job creation and economic growth in Sault Ste. Marie.” said, Bryan Hayes, Member of Parliament for Sault Ste. Marie
This massive investment will help to ensure Essar Steel Algoma remains competitive for years to come, while building industry leading capacities to produce a broader range of products as well as allowing for the increase in total steel output.” added David Orazietti, Member of Provincial Parliament for Sault Ste. Marie
Essar Steel Algoma Inc. anticipates that the project will create more than 200 jobs, while also supporting the maintenance of approximately 2,500 direct jobs and more than 5,000 indirect jobs.