ArcelorMittal invests over $60 million at its Canadian plant

ArcelorMittal

ArcelorMittal Long Products Canada has announced a major investments of nearly USD60 million by 2020 in its Contrecoeur, Quebec steel production facilities. The investment will enable the company to maintain its leading position in steel in North America, with a focus on product quality facilitated through modern plants and a reduced environmental footprint.

ArcelorMittal will replace two reheating furnaces at its Contrecoeur-East wire rod mill (approx. CAD$30 million) and its Contrecoeur-West bar mill (approx. CAD$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 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. The work will cost approximately CAD$6 million.

The investments were made possible in part by the Québec government’s electricity rebate programme 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. ArcelorMittal investment project rebate is currently estimated at CAD$25 million until 2020.

In addition to these announcements, ArcelorMittal Long Products Canada has also invested CAD$27 million in a new finishing line at its Longueuil mill, a project which was completed in June 2017. Past and future work requires support from many suppliers and subcontractors, mostly from local communities, which adds economic benefits.

François Perras, Chief Executive Officer, ArcelorMittal Long Products Canada, said: “We are renewing ArcelorMittal’s commitment to Quebec. 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. Our workers’ ongoing efforts and government support have been instrumental in this investment decision. With this modernisation plan, we will continue to play a major role in our communities by supporting more than 1,700 direct jobs and converting our natural resources right here in Quebec.”

Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the digital strategy, said: “The innovative manufacturing sector is one of the three economic pillars that our government is prioritising, along with entrepreneurship and exports. 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 modernisation are synonymous with growth for businesses and are key levers for Québec’s prosperity.”

Carlos J. Leitão, Minister of Finance, said: “Québec’s stable business environment, recognised expertise in a number of leading-edge sectors and abundant natural resources make it the ideal place to invest. Today’s announcement clearly demonstrates ArcelorMittal’s interest in expanding its operations in Québec. The confirmation of these strategic investments will bolster and diversify our economy in several of Québec’s regions.”