Global steel giant ArcelorMittal’s subsidiary ArcelorMittal Long Products Canada has announced that it will invest C$70 million by 2020 in its Contrecoeur, Quebec steel production facilities in order to maintain its leading position in steel in North America, with a focus on product quality through more modern plants and a reduced environmental footprint.
Accordingly, the company will replace two reheating furnaces, at its Contrecoeur-East wire rod mill with an investment of approximately C$30 million and its Contrecoeur-West bar mill with an investment of around C$33 million. These new furnaces, which aim to increase the company's rolling capacity by 100,000 mt, will enable greater productivity, optimal energy use and reduced greenhouse gas emissions. The work should continue until the first half of 2020.
At the same time, ArcelorMittal Long Products Canada will also be replacing the dust collector at the Contrecoeur-West steelworks by the end of the current year to improve its performance and increase health and safety for the benefit of its workers and communities. This work will cost approximately C$6 million.
François Perras, CEO of ArcelorMittal Long Products Canada, stated that the investment in the high-performance equipment will help the company accelerate its move towards high-value-added steel production, particularly for the automotive and construction industries.
Meanwhile, according to the company’s statement, these investments were made possible in part by the Québec government’s electricity rebate program, announced by the government of Quebec in the 2016-2017 budget. This electricity rebate is intended for companies engaging in major investment projects in the manufacturing sector as well as in the transformation of natural resources. The ArcelorMittal investment project rebate is currently estimated at C$25 million until 2020.