ArcelorMittal Dofasco has been named as the first recipient of federal funding intended to keep the steel industry competitive.
Navdeep Bains, Minister of Innovation, Science and Economic development announced Friday, that $49.9 million from the strategic innovation fund will be invested in a slate of upgrades at its operations in Ontario and Quebec.
Bains says it will help protect 6,400 jobs while the federal government works to have U.S. tariffs on Canadian steel and aluminum, lifted.
“If a company is more competitive and is able to provide a better price point and is able to compete in the market that creates additional opportunities that bodes well for the employees,” he said.
The funding will contribute to a $205-million, multi-faceted project that will modernize its facilities.
“It has been a challenging time economically, more recently, this investment really helps us drive our agenda forward,” said president and CEO of ArcelorMittal Dofasco, Sean Donnelly.
The company’s agenda, he says, is predicated on improvements to product development through automation and digital technologies.
The upgrades will include the installation of fuel rate sensors in the blast furnaces to reduce fuel consumption.
Once all seven projects are complete, the company expects to cut greenhouse gas emissions by up to 100,000 tonnes.