Inside Steelcon’s $40M facility
Brampton-based company increasing its SIN Beam production by setting up shop in the Garden City
Under the high ceiling of Steelcon’s new factory space on Grantham Avenue, amidst the clanks and whirs and sparks, Thomas Gruber of Austria and his partner are putting together the intricate pieces of a giant machine.
The components of the robotic beam assembler arrived in St. Catharines in four or five shipping containers. It will take the pair from Austrian-based manufacturer Zeman four weeks to install all the small pieces and get the machine up and running.
“That’s like Lego for men,” Gruber says smiling.
When completed, the machine will be part of a 75-metre-long assembly line for revolutionary SIN Beams — a construction beam made of 30 per cent less steel than conventional beams, making it lighter, cheaper and easier to transport.
Brampton-based Steelcon has the exclusive North American rights to the SIN Beam, created by Zeman. The growing popularity of SIN Beam is the reason Steelcon has launched a $40million expansion into St. Catharines.
“That has been basically responsible for Steelcon’s explosive growth,” says Fabian Hoggard, Steelcon’s general manager in St. Catharines. “Right now we’re projecting a three-fold increase in production over the next two years as we bring on board the next SIN Beam line.”
Hoggard says the SIN Beam is currently being produced at Brampton headquarters on the initial two-robot line put in four years ago as a trial run. The St. Catharines line will be larger, with more capacity due to four robots.
“Everything is gearing up towards basically more production to actually meet the shortfall that we’ve got in capacity,” he says. “Right now we’re working with significant clients. We’re concerned that we’re having to turn to people like Ellis Don and say, you know, I’m sorry, we can’t service you on one job or the other. It’s an enviable position to be in, but not a good position.”
The company looked at various
areas across North America for its growth.
Hoggard says it was looking for a location that could be a central point for servicing the U.S. market and beyond. Niagara was key in that respect. It also needed the right property and available labour.
“Niagara has a large pool of qualified workers and skilled trades to come into this facility,” says Ralph Roselli of Colliers International in Niagara, who worked with the company to find a location. A lot of effort was made over a year and a half to find a space with all the requirements in ceiling height, power, floors and more.
Since Steelcon started leasing space from Trenergy Inc. on Nov. 1 in its building at 87 Grantham Ave., it has hustled to get its operations up and running.
It’s producing steel with 10 employees right now while setting up operations at the same time. It brought in 15 truckloads of concrete to pour a new floor so its machinery would be on absolutely solid ground. It installed the Python X steel cutter supplied by Burlington Automation and plans to have the beam assembler up by Christmas.
All equipment for its $12-million Phase 1 is expected to be installed by the spring. Phase 2 will happen in 2020 and will involve expanding the footprint of the facility to a second line with a $28-million investment. As the company progresses it will be hiring more people, up to 100 in conjunction with Phase 2.
Hoggard says Steelcon is going to be working closely with Niagara College to ensure tit’s able to provide the skill sets the company needs and will provide training grounds for students to come in and try co-op programs.
The company still produces conventional beams in addition to the SIN Beams. On Tuesday, employees were working on hollow structural steel beams going into the new Walmart at the Pen Centre.
Hoggard says in two years, the ratio of work is expected to be 90 per cent SIN Beam and 10 per cent conventional.
Hoggard was on the board of the Niagara Industrial Association for several years and says it watched with a little bit of dismay as a lot of strong manufacturers moved on for one reason or the other. To be able to set up Steelcon’s new facility in St. Catharines is exciting, he says, and it’s a boost in the wake of GE’s recent investment in Welland.
“It’s exciting to see it all coming together, because we’re looking long term.”