Government of Canada fulfilling its commitment to protect Canada’s steel industry
January 10, 2019 – Sault Ste. Marie, Ontario
The Government of Canada is delivering on its commitment to support our country’s dedicated steel and aluminum workers, their families and their communities.
Today, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced an investment of up to $90 million in Algoma Steel Inc., Canada’s second largest integrated steel producer.
This investment will create and maintain 3,050 jobs in Sault Ste. Marie, Ontario. Algoma Steel is undertaking $600 million in capital investments over an eight-year period that are vital to the local economy and national steel industry. These investments include projects to adopt new technologies, improve productivity and sustain competitiveness in the global market. Improvements will help Algoma Steel modernize its core production assets, including the steel rolling and steel plate mills, which will position the company to offer a wider range of steel grades and increase production capabilities.
The government’s investment in Algoma Steel, a world-class steel producer, is ensuring the company will continue to provide thousands of Canadians with good middle-class jobs and remain an important contributor to our economy and manufacturing supply chains. By leveraging multiple funding programs, our government is strategically deploying resources to support the steel sector.
“In these challenging times for Algoma, and in the face of unfair and unjust tariffs, we are committed to standing shoulder to shoulder with our hard-working steel and aluminum workers, their families and their communities. Our investment will help Algoma innovate, strengthen the competitiveness of Sault Ste. Marie’s steel plant and support good middle-class jobs for Canadians.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Developmen
“By investing in Algoma Steel, we’re ensuring the long-term viability of the Sault’s steel operation, thereby supporting thousands of direct and indirect middle-class jobs, as well as the current and future pensioners, that form the backbone of the Sault Ste. Marie and area economy. We’re also ensuring that Algoma’s world-class steel products continue to make it to market.”
– Terry Sheehan, Member of Parliament for Sault Ste. Marie
“This support is vital to our modernization initiative, enabling us to grow and sustain our competitive position as an advanced manufacturer in Canada. We greatly appreciate the government’s continued advocacy for Canadian steel.”
– Kalyan Ghosh, President and CEO, Algoma Steel Inc.
Based in Sault Ste. Marie, Ontario, Algoma Steel is a fully integrated steel producer that manufactures rolled steel products, including sheet and plate, and has a production capacity of 4 million tons.
In 2017, the Canadian steel industry employed more than 23,000 Canadians and contributed $4.2 billion to Canada’s gross domestic product
The $90 million federal investment includes up to $60 million from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) and $30 million from Innovation, Science and Economic Development Canada’s Strategic Innovation Fund.
FedDev Ontario, one of six regional development agencies, delivers funding and business services that support innovation and growth in southern Ontario.
The Strategic Innovation Fund attracts and supports high-quality business investments across all sectors of the economy by encouraging R&D that will accelerate the transfer of technology and the commercialization of innovative products, processes and services and will facilitate the growth of innovative firms.
In addition to the Strategic Innovation Fund, there are hundreds of programs and services to help businesses innovate, create jobs and grow Canada’s economy. With a simple, story-based user interface, the Innovation Canada platform can match businesses with the most fitting programs and services in about two minutes.