Province lends steel maker $7 million for plant upgrades

The government of Ontario is investing in the province’s steel industry by lending Ivaco Rolling Mills $7 million to help it update its facility, according to a statement from the Ministry of Economic Development, Trade and Employment. The money will be used to increase capacity and produce higher quality steel products, which are used in the automotive and manufacturing industries, as well as the energy sector. The new technology will also make the plant more energy efficient and help it reduce particulate emissions.

Ivaco-casting-steel-industry-Ontario-manufacturing-EDIWeekly

The total value of the modernization project will be $80 million, the statement says. The steel industry employees approximately 17,000 workers in Ontario. Ivaco, with 425 employees, has the capacity to produce 850,000 tons of wire rod and 450,000 tons of steel billet (ingots) annually.

“The investment we’re announcing today will help Ivaco improve its competitiveness while increasing environmental protection,” said Dr. Eric Hoskins, Minister of Economic Development, Trade and Employment.” Support for manufacturing is part of the Ontario government’s strategy to create jobs and grow the economy for a more prosperous and fair Ontario.”

Despite the optimistic words, the steel industry has faced challenges in recent years, and its future is by no means certain. All steelmakers in Canada are foreign owned now, including Ivaco, which is part of the Heico Companies, based in Chicago. Another major Ontario steel company, Stelco, in Hamilton, employs 2,000 workers today, but its American owners, US Steel, are committed to keeping the plant going only until the end of 2015. The company has been losing money, and there are fears that it could walk away from the Hamilton plant at that time.

Industry analysts point to a global overcapacity of steel production as the cause of the Canadian industry’s troubles. In total, Canadian steel producers manufactured 16.5 million tons of steel in 2012, according to a Troy Media report. The Canadian industry, unlike its foreign competitors, is not subsidized, according to the head of the Canadian Steel Producers Association Ron Watkins, a fact that makes it difficult to compete.

Did you miss this?

Other Popular Stories

  • Company tries to stop U.S. cleanup effort on longest oil spill in history claiming it will "lead to a bigger environmental catastrophe"
  • If Keystone XL dies, will Energy East replace it?
  • Ford investment in Oakville gets auto industry "on the move again"
  • De Beers new diamond mine in far north among world's largest
  • UC engineers create first semiconductor-free microelectronics device
  • Automation-proof jobs, and jobs that will eventually be automated
  • Commodities firm sues Shell, BP, Statoil for price fixing
  • Deep Roads — researchers propose taking road expansion underground to reduce congestion and pollution
  • Q1 Canadian corporate profits up, led by oil and gas
  • One sweet ride: a biodegradable auto made of sugar beets and flax — but what about mice?
  • Surveillance systems company receives $75M federal investment
  • US resumes exports of LNG
  • Pratt & Whitney Canada to invest $275 million in Quebec plant
  • Government wants to know what chemicals are used in fracking
  • Mixed results for Canada's auto parts industry: report
  • Energy costs, global temperature, continue rising
  • Continued strength in manufacturing in November: RBC
  • Nuclear industry makes do with refurbishment as new plants cancelled
  • Bombardier announces firm CSeries orders from Russia, Gulf Air
  • 200 days in lockup: Four volunteers live in simulated moon lab in preparation for future moon mission
Scroll to Top