Essar Steel Algoma is planning for CDN $240 million modernization and expansion program to make it more competitive and sustainable in a tough global steel market.
The modernization and expansion program will include the construction of the No. 2 ladle metallurgy furnace, an upgrade and expansion of the Direct Strip Production Complex — the only facility in Canada that converts liquid steel directly into steel coils, and the automation of North America’s only combination plate and strip mill.
Bolstered by up to $60 million from the governments of Canada and Ontario, the investment will support technological and product innovation that will enable Essar Steel Algoma to meet the growing global demand for advanced grades of steel and support growth in related industries like shipbuilding, mining and manufacturing .
The project is supported by a $30 million repayable contribution from the Government of Canada by the Federal Economic Development Agency of Ontario through the Advanced Manufacturing Fund, and a $30 million grant from the Government of Ontario delivered by the Ministry of Northern Development and Mines and the Northern Ontario Heritage Fund Corporation.
Engineering and design work is already under way, and construction will begin on several components of the project immediately. While some of the projects will be completed within 18 months, the entire optimization and renewal program will be complete by 2022. The construction is expected to support more than 200 additional jobs over the course of the project while maintaining 2,500 direct jobs at the facility and supporting more than 5,000 indirect jobs.
|Company Name||Essar Steel Algoma|
|Type||Modernization and Expansion|
|Estimated Cost||CDN $240 million|
|Jobs||200 Additional jobs|