Ottawa Invests $20 Million Into Gerdau's Steel Mills Modernization Works

SEATTLE (Scrap Monster): Gerdau- the Sao Paulo, Brazil-headquartered largest Latin American producer of long steel will receive $20 million investment from the Canadian government towards modernization of its Ontario steel mills.

According to company press release, the investment through the Strategic Innovation Fund programme under the Innovation, Science and Economic Department, will be in support of the previously announced $81.2 million project by the company to modernize its Whitby and Cambridge steelmaking facilities. The upgrades are expected to generate 108 new jobs in the region, in addition to maintaining the existing 710 jobs at these facilities.

The proposed government investment will support modernization of steel production lines and reduction in manufacturing costs at the facility. Apart from that, it is also intended to bring in tighter controls on the amount of scrap metals ending up in landfills and improve the billet production capability.

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Chia Yuan Wang, president of Gerdau Long Steel North America reaffirmed the company’s commitment to innovation and advancement of strategic investments to improve its operational efficiency and environmental performance. The project will help Gerdau continue making world-class steel in Ontario, Wang added.

Meantime, Jennifer Connell, parliamentary secretary to the Minister of Finance noted that the investment is aimed at strengthening the competitiveness of steel sector for many years to come. Furthermore, it will support jobs for middle-class Canadians in Durham region, she added.