ArcelorMittal announced that it will invest CAD $70 million (U.S. $56.8 million) in its Contrecoeur, Quebec, wire rod and bar facilities.
Two reheating furnaces will be replaced at Contrecoeur-East wire rod mill and its Contrecoeur-West steel bar mill. The furnaces will increase the company’s rolling capacity by 100,000 metric tons with greater efficiency and reduced gas emissions. The projects are estimated at CAD $30 million and CAD $33 million, respectively, and will be completed by the first half of 2020.
At the same time, CAD $6 million will be allocated to replace the dust collector at the Contrecoeur-West steelworks. Work is expected to be completed by the end of 2018.
The investments were made possible in part by a government electricity rebate program intended for companies engaging in major investment projects in the manufacturing sector, as well as in the transformation of natural resources. The ArcelorMittal rebate is estimated at CAD $25 million until 2020.
“We are renewing ArcelorMittal’s commitment to Quebec,” said François Perras, CEO of 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. Our workers’ ongoing efforts and government support have been instrumental in this investment decision. With this modernization 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.”
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