Province Gives Hamilton Steel Company $22.7M Grant – Loan

Ontario is partnering with ArcelorMittal Dofasco to support stability in the steel industry, maintain low costs for the North American market and keep 4,700 jobs in Hamilton.

Cristina Martins, Parliamentary Assistant to the Minister of Economic Development and Growth, made the announcement today at the company’s headquarters in Hamilton.

ArcelorMittal Dofasco is Canada’s largest steel producer and ships more than 4.5 million net tons of steel every year to top automotive, energy, packaging and construction companies.

With support from Ontario’s Jobs and Prosperity Fund, the company is investing in a Hot Mill modernization project that will significantly improve their plant in Hamilton with state-of-the-art equipment, positioning Dofasco for future growth. These upgrades will help the company to produce and sell higher value products and will strengthen Dofasco’s operations in Ontario and allow the company to offer higher-quality products at lower costs to the North American market.

QUICK FACTS

• Ontario is providing a grant and loan combination totalling $22.7 million through the Jobs and Prosperity Fund to ArcelorMittal Dofasco. This is part of a larger overall investment by the company valued at $151 million. The project is scheduled for completion in December 2022.
• The investment will support Ontario’s steel supply chain and broader manufacturing sector, in particular Ontario’s 400-km automotive corridor with direct impacts on five auto assemblers and over 1,200 auto parts suppliers tool, die and mould makers. The North American automotive market accounts for a significant share of Dofasco’s sales.
• More than 70 per cent of Canada’s steel production capacity is located in Ontario. Our steel industry directly employs 16,000 and indirectly employs almost 53,000 in the province.
  Hamilton is an important steel cluster and globally recognized R&D and commercialization hub focused on steel products supporting thousands of high paying manufacturing jobs as well as the local economy.
• The Jobs and Prosperity Fund helps secure private sector investment in Ontario, allowing the government to partner with businesses that are creating jobs and enhancing productivity, innovation and exports. Every dollar invested through the fund leverages an average of $10 in private sector investments. Since January 2013, Ontario has committed over $900 million in projects administered under JPF, leveraging over $11.5 billion in total investment. This is helping to create and retain approximately 48,000 jobs.
• Since 2007, Ontario has announced repayable and non-repayable support of over $90 million that will leverage over $680 million in productivity and innovation investments in the province’s steel industry.