Backgrounder
The $90-million federal investment in Algoma Steel Inc. represents an Innovation, Science and Economic Development (ISED) portfolio-wide response: a $60-million repayable contribution from FedDev Ontario and $30 million through ISED's Strategic Innovation Fund (SIF).
Through the investment supported by SIF, Algoma will create or maintain over 3,050 jobs for the duration of the project.
The $30 million in SIF funding will be focused on improving Algoma's product capabilities by installing new equipment and upgrading its Discrete Plate Mill, the only mill of its kind in Canada. Specifically, Algoma will install state-of-the-art heating and cooling equipment to produce a wider variety of product grades. The company will also make additional equipment upgrades to better service the plate mills and maximize production benefits. Through this investment, Algoma will extend the life expectancy of its Discrete Plate Mill for another 20 to 25 years. As a result, the company will enhance its product capability and productivity and improve Canada's plate market share. The SIF project is expected to be completed by September 30, 2020, in support of Algoma's over $107 million in capital investments.
The $60 million in FedDev Ontario funding is supporting productivity improvements to core Algoma assets, including the Direct Strip Production Complex (DSPC), a unique-in-Canada facility that produces high-quality and high-value steel sheet products using an efficient, continuous casting-direct rolling process; the Plate and Strip Hot Mill, which is the only facility in Canada that produces steel plates for external customers; and the installation of an additional Ladle Metallurgy Furnace (LMF), a steel refining facility, to produce advanced steel grades tailored to customer specifications. The FedDev Ontario project is expected to be completed by March 31, 2021, and will support the over $600 million in capital investments being undertaken by Algoma Steel Inc.
All Strategic Investment Fund announcements are publicly available.
