Steel Mills
Canadian Government Tells EVRAZ: "We've Got Your Back"
Written by Sandy Williams
March 7, 2019
The federal government of Canada announced it will give EVRAZ North America C$40 million ($29.78 million U.S.) from its Strategic Innovation Fund to help with C$112.6 million of upgrades planned at facilities in Regina and Red Deer, Alberta.
“This will enable the company to produce valued-added OCTG products that match Canadian market demand and make them available at a competitive price to Canadian resource firms that, like EVRAZ, are facing shortages owing to the cost-prohibitive effects of U.S. tariffs,” said the Canadian government in a press release.
The upgrades will increase steelmaking capacity, reduce emissions and improve efficiency. The project will create 35 jobs at Red Deer and maintain more than 2,100 others in Alberta. Upgrades will be made between 2019 and 2021 and include:
- Electric arc furnace power increase
- Reheat furnace throughput increase
- Red Deer heat treat expansion line
- Red Deer threader line upgrade
“Your competitiveness has been wrongfully blunted since June of last year by the imposition of U.S. tariffs, illegal and totally unjustified tariffs imposed on the specious grounds of national security,” said Public Safety Minister Ralph Goodale in comments at the Regina steel mill on Wednesday. “We’re in this together and the Government of Canada has your back.”
EVRAZ NA President and CEO Conrad Winkler said that 2018 was a “rough” year for the company, with long backlogs and many orders heading to the United States. Both the Canadian and U.S. operations were “significantly” affected by the Section 232 tariffs.
“In 2019, most of our order book here in Regina is staying in Canada,” he said. “We’ve got several large projects, so the impact in 2019 should be considerably less.”
EVRAZ and its customers have joined with the Canadian government to lobby Washington for the removal of the Section 232 measures. Goodale noted that Canada would find it “difficult to implement the new NAFTA” while the tariffs remain in place.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.