Quebec’s steel industry just got a shot in the arm to the tune of almost $70 million.
ArcelorMittal Long Products Canada announced investments of nearly $70 million by 2020 in its Contrecoeur, Que. steel production facilities.
“We are renewing ArcelorMittal’s commitment to Quebec,” says François Perras, Chief Executive Officer, ArcelorMittal Long Products Canada. “Our choice to invest in the acquisition of high-performance equipment will help us accelerate our move towards high-value-added steel production, particularly for the automotive and construction industries. ArcelorMittal Long Products Canada will also be in a better position to meet its customers’ needs and face international competition.”
According to a company press release, the investment will enable the company to maintain its leading position in steel in North America, with a focus on product quality through more modern plants and a reduced environmental footprint.
“Our workers’ ongoing efforts and government support have been instrumental in this investment decision,” says Perras. “With this modernization plan, we will continue to play a major role in our communities by supporting over 1,700 direct jobs and converting our natural resources right here in Quebec.”
Where the money is going:
• ArcelorMittal will replace two reheating furnaces at its Contrecoeur-East wire rod mill (approx. $30 million) and its Contrecoeur-West bar mill (approx. $33 million). These new furnaces, which aim to increase the company’s rolling capacity by 100,000 tonnes, will enable greater productivity, optimal energy use and reduced greenhouse gas emissions. The work should extend until the first half of 2020.
• At the same time, ArcelorMittal will also be replacing the dust collector at the Contrecoeur-West steelworks by the end of 2018 to improve its performance and increase health and safety for the benefit of our workers and our communities. This work will cost approximately $6 million.
The investments were made possible in part by the Québec government’s electricity rebate program for L-rate customers, announced by the Government of Quebec in the 2016-2017 Budget. This electricity rebate is intended for companies engaging in major investment projects in the manufacturing sector as well as in the transformation of natural resources. The ArcelorMittal investment project rebate is currently estimated at $25 million until 2020.
“The innovative manufacturing sector is one of the three economic pillars that our government is prioritizing, along with entrepreneurship and exports,” says Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy. “We are, therefore, proud to support the initiatives of large businesses established in Québec which, through major investments, are carrying out innovative projects and adopting new technologies in their manufacturing approaches and procedures. Innovation and modernization are synonymous with growth for businesses and are key levers for Québec’s prosperity.”
In addition to these new announcements, ArcelorMittal Long Products Canada has invested $27 million for a new finishing line at its Longueuil mill, a project which was completed in June of last year. Past and future work requires support from many suppliers and subcontractors, mostly from local nearby communities, which adds to the economic benefits of projects.
(ArcelorMittal Long Products Canada)
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