A Hamilton steel producer received a $49.9-million federal subsidy to assist with a massive mill upgrading project.
Federal Innovation, Science and Economic Development Minister Navdeep Bains was at the ArcelorMittal Dofasco plant on Oct. 19 where the company is in the midst of a $151-million modernization program.
The money comes through the Strategic Innovation Fund, a program designed to attract and support high-quality business investments across all sectors of the economy by encouraging R&D and the commercialization of innovative products, processes and services.
"In the face of unfair and unjust tariffs, we committed to standing shoulder to shoulder with our workers and supporting the innovative, world-class products they produce,” said Bains in a statement.
“Our investment in ArcelorMittal will help strengthen the competitiveness of Canada's steel industry for years to come, contribute to economic growth, increase the industry's capacity to innovate, grow value added, support product and market diversification, and create and sustain jobs for Canadians."
ArcelorMittal Canada employs 4,700 in Hamilton and 1,700 in Contrecoeur, Que.
Dubbed the Dofasco Hot Mill Coiler Modernization Project, the mill upgrades involve replacing three old coilers with two modern ones, along with runout tables and strip cooling systems.
The upgrades will allow all the company’s slabs to be converted to coils. The project will be completed in 2020.
These improvements mean improved safety, production of a better quality of steel, allows the company to be more energy efficient.
In recent years, Dofasco has been investing billions to produce lighter and more durable high-steel steel to meet automakers requirements to develop more fuel-efficient vehicles.
Earlier this year, Dofasco received $22.7 million in a grant and loan from the province’s Jobs and Prosperity Fund.
