The Ontario government says that it will provide $22.7 million to steel producer ArcelorMittal Dofasco to support Hamilton’s steel industry.
The investment, a grant and loan combination, will be made through the Jobs and Prosperity Fund and will “support stability in the steel industry, maintain low costs for the North American market and keep 4,700 jobs in Hamilton,” according to a statement from the Ministry of Economic Development and Growth.
ArcelorMittal is Canada’s largest steel producer. It ships more than 4.5 million net tons of steel every year to top automotive, energy, packaging and construction companies. Thanks to the Ontario’s Jobs and Prosperity Fund, the company will invest in a Hot Mill modernization project that will improve the plant in Hamilton with state-of-the-art equipment. The upgrades will help the company to produce higher-value products and will strengthen its operations in Ontario.
The provincial government believes that the investment will support the province’s steel supply chain and manufacturing sector, in particular Ontario’s 400-km automotive corridor with direct impacts on five auto assemblers and more than 1,200 auto parts suppliers tool, die and mould makers.
The Jobs and Prosperity Fund helps secure private sector investment in Ontario, allowing the government to partner with businesses that are creating jobs and enhancing productivity, innovation and exports.
“This support for ArcelorMittal Dofasco will keep good jobs in Ontario, help grow our economy and make sure Hamilton stays as strong as steel. We think it’s crucial that Ontario companies have the support they need to stay competitive, and we’ll continue to do everything we can to support them, and their workers,” Steven Del Duca, minister of economic development and growth, said in a press statement.