Feds brighten future for ArcelorMittal with $50M
The federal government is kicking in almost $50 million toward a $205 million series of projects designed to modernize ArcelorMittal operations in Hamilton and Quebec.
Navdeep Bains, Minister of Innovation, Science and Economic Development, announced in Hamilton on Friday “a commitment of up to $49.9 million” to ArcelorMittal Canada Inc.
It’s meant to help the company be more competitive, productive and environmentally friendly, he said.
“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,” said Bains.
Bains says the money is part of a $2 billion effort by the federal government to support the country’s steelmakers, which continue to face a 25 per cent tariff on U.S. sales.
Also, Canada’s aluminum industry has been slapped with a 10 per cent tariff.
The funding for the project is a mix of “repayable and nonrepayable” money, and will be provided over the next three years, said a spokesperson for Bains.
The project is “complimentary” to $22.7 million in provincial funding for a $151-million upgrade of the steelmaker’s hot mill operation that was announced in April by the former Liberal government at Queen’s Park.
ArcelorMittal CEO Sean Donnelly said, “This investment support really helps us to enhance, speed up and maintain the projects we have in our hopper to really drive our efficiencies and our improvements.
“It’s been a challenging time economically more recently.
“So these investments really help us drive our agenda forward.”
The company says the series of seven projects will help to sustain employment in Hamilton — where there are more than 4,700 jobs — and in Contrecoeur, Que., where the steelmaker has 1,700 employees.