Government of Canada Supports Ivaco Rolling Mills Upgrade
03/13/2012 - Government of Canada funding will help support the expansion of Ivaco Rolling Mills that will allow the company to increase its production of steel billets by 225,000 tons annually and to produce different grades and higher quality steel billets.
Government of Canada funding will help support the expansion of Ivaco Rolling Mills, one of the largest producers of steel wire rod in North America and one of the area's main employers. The announcement was made by Honorable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), accompanied by Pierre Lemieux, Member of Parliament for Glengarry-Prescott-Russell.
FedDev Ontario is providing Ivaco Rolling Mills with a repayable contribution of up to $10 million for the company's $80 million expansion project. Upgrades to the steel plant will allow the company to increase its production of steel billets by 225,000 tons annually and to produce different grades and higher quality steel billets. The availability of these higher quality grades of steel billets will allow the rolling mill to increase production, further penetrate and expand its market share and enter new markets not currently served.
The expansion will also introduce advanced steel billet technology that is not yet being used in a rod rolling mill in North America. This technology will allow Ivaco Rolling Mills to introduce new grades of steel to its process and expand its product line.
"Our investment will increase the Ivaco Rolling Mills' production capacity and product line, allowing the company to offer higher quality products and improve its competitive position in global markets," said Minister Goodyear.
The investment through FedDev Ontario's Prosperity Initiative will help the company become a North American leader in the implementation of new technology, while also enabling the company to better compete in the global marketplace with new products and processes that enhance productivity and environmental responsibility. The company anticipates creating 50 new permanent jobs and 200 short-term construction jobs.
"This project will also have many local benefits, from creating short-term construction jobs to adding permanent jobs at the company, which is the largest employer in L'Orignal and Hawkesbury," said MP Lemieux.
The Government of Canada's contribution is contingent on the successful completion of a federal environmental assessment of the proposed project under the Canadian Environmental Assessment Act.
"The FedDev Ontario Prosperity Initiative clearly demonstrates the importance that the government has placed in ensuring that Canada maintains its technological lead in steel manufacturing, while at the same time, creating and preserving jobs both in the plant and surrounding communities," stated Giorgio Piliu President and CEO of Ivaco.
Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. The Agency has launched a number of initiatives to create a Southern Ontario Advantage and place the region in a strong position to compete in the global economy. These initiatives are designed to encourage partnerships and support projects that help the region's businesses and communities become more competitive, innovative and diversified.
Ivaco Rolling Mills produces the largest variety of wire rod sizes of any North American rolling mill for the automotive, oil and gas, mining and construction industries both in Canada and around the world. The rolling mill was originally constructed in 1971, followed by the addition of a steel plant to supply the mill with steel billets in 1975.
