The Canadian government, through its Innovation, Science and Economic Development Department, has announced plans to invest $20 million on an $81.2 million project that Gerdau has planned for its mills in Whitby and Cambridge, Ontario. The upgrades will add 108 jobs and maintain 710 more at these locations.
The investment will help Gerdau, which is headquartered in Sao Paulo, modernize steel production lines, reduce manufacturing costs, reduce the amount of scrap metal going to landfills and improve production capability for billets, according to the company.
In a news release announcing the investment, Jennifer Connell, parliamentary secretary to the Minister of Finance, says, "We are committed to supporting Canadian steelworkers and the innovative, world-class products they produce. Our investment in Gerdau 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 here in Durham region."
The investment is being made through the Canadian government’s Strategic Innovation Fund, a program designed to attract and support high-quality business investments across all sectors of the economy by encouraging firm expansion as well as R&D that will accelerate the transfer of technology and the commercialization of innovative products, processes and services and will facilitate the growth of innovative firms.
Chia Yuan Wang, president of Gerdau Long Steel North America, says, "Gerdau is committed to innovation and to the advancement of strategic investments that improve our process efficiency, product offerings and environmental performance. This project will help us continue making world-class steel in Ontario."