March 31, 2015 12:26 pm
Updated: March 31, 2015 7:58 pm

Evraz North America investing $200 million in Regina plant

Evraz North America will be investing around $200 million at its facility in Regina.

Teri Fikowski / Global News
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REGINA – Evraz North America will be investing around $200 million at its facility in Regina.

The investment will include installation of a new two-step larger diameter pipe mill. It will also enable the production of larger, thicker-wall pipe and increase annual production capacity by over 100,000 tons.

Evraz is also making state-of-the-art upgrades in steelmaking, including degassing and the ability to make larger steel slab sizes.

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“This investment will secure our position as the highest quality, lowest cost integrated producer of large diameter pipe in North America,” said Conrad Winkler, EVRAZ North America President and CEO.

The facility is expected to create 40 permanent jobs, more than 1,000 construction jobs, and pump cash into the local economy.

“About $100 million goes into sub trades and suppliers, and directly to creating jobs and maintaining jobs in the Regina market,” said Mayor Michael Fougere. “It’s very good news.”

The expansion is not only good news for the city, but the province.

Despite oil revenue down more than $660 million from last year’s budget, Premier Brad Wall said the expansion displays Saskatchewan’s diverse economy.

A new tax incentive introduced by the government, targeting steel producers making a capital investment of a minimum of $100 million, was key to the announcement and discussions had taken place for months.

“They have choices, especially in manufacturing and other places, so we ought to make that decision as easy as possible to make,” said Wall.

“Without those incentives we would not be here with this announcement,” added Winkler.

Evraz and Enbridge also announced that the two companies will partner on a joint research and development program to try and enhance pipeline performance.

“EVRAZ has the largest pipe Research and Development Centre in North America and it has played an important role in Canadian steel advances since 1982,” Winkler said.

“Now we will combine our experience with that of Enbridge to further augment the performance of large diameter pipe.”

Large diameter line pipe is important to oil and natural gas distribution.

Evraz has produced more than 51,000 kilometers of project pipe from recycled metal over its 59 years in Regina.

This new expansion at the Evraz facility in Regina is expected to deliver around 40 new jobs.

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