“This investment will further amplify our tactical flexibility by providing the capability to produce more than one-million tons of pig iron annually,” Stelco chief executive David Cheney in a statement. 

In speaking with analysts during the company’s quarterly earnings call, he added: “It gives us an incredible amount of flexibility in how we operate our assets, how we arbitrage the market between utilizing scrap and hot metal in our production mix, as well as how we manage our maintenance program,” Cheney said.

“Having this outlet for hot metal offers a number of benefits operationally.” 

Construction of the casting machine will coincide with a planned CA$100 million reline of the Lake Erie blast furnace, which is to be completed in the second quarter of 2020. The company said it will begin shipments in the ensuing quarter. 

Stelco executives said they already have a letter of intent from a customer who has spoken for a “meaningful portion” of the first two years’ worth of output.