Hamilton’s premier steel manufacturer, Stelco will get a $50-million boost from the federal government as it looks to modernize two steel production plants.
The investment announced on Wednesday by Hamilton MP and Minister of Seniors, Filomena Tassi is part of a $412-million Stelco project which is expected to create 75 jobs and maintain 2,200 more in the province.
Stelco is planning to upgrade not only the Hamilton operation but the Lake Erie facility which will see improvements to bolster its supply line to customers, and the creation of a new recycling facility.
“We are committed to supporting Canadian steelworkers and the innovative, world-class products they produce,” said Tassi. “Our investment in Stelco will help strengthen the competitiveness of the steel sector for years to come, maintain Canada’s position in the global market and support jobs for middle-class Canadians.”
The investment is part of the Federal Liberals Strategic Innovation Fund, designed to attract business investments across all sectors of the economy by encouraging companies to enhance research and development strategies.
“Stelco has a proud history of bringing innovation to market by revolutionizing the steelmaking process and through the products we develop for our customers,” Stelco’s Chief Executive Officer David Cheney said in a statement. “Through this partnership with the Government of Canada, we intend to continue that tradition by modernizing our facilities and empowering our 2,300 employees to manufacture the next generation of steel products our customers demand.”
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The announcement comes a day after Stelco released it’s latest financials numbers. The steel giant revealed a net income of $1-million in the second quarter of 2019. An improvement over a loss of $11-million during the same period last year.
Revenue came in at $431-million for the quarter, down from the $711-million it took in during the same quarter last year, due in part to its average selling price dropping 15 per cent with shipped steel volumes decreasing 27 per cent.
The company says the primary financial challenges in the quarter came from tariffs imposed by the U.S. and falling market prices.
Financial markets data firm Refinitiv said analysts had hoped for an adjusted net income of $21.5 million, or .21 cents per share from Stelco.
WATCH: Stelco pushes for more support for steel industry in meeting with Trudeau
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