Feds commit $50M for modernization effort at ArcelorMittal Dofasco

The Canadian government is chipping in as much as $50 million for a$205 million plan fromArcelorMittal Canada Inc. aimed at modernizing the Hamilton steelmaker.

NavdeepBains, Minister of Innovation, Science and Economic Development, was in Hamilton Friday to announce the $49.9 million commitment as part of an overall effort from the federal government tosupport Canadian steel and aluminum producers who are still dealing with U.S. tariffs.

"This investment is about the people in Hamilton, this investment is about good-quality jobs."

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The funds through the Strategic Innovation fund willkickstartseven projects atDofasco'sfacilities in Hamilton and Montreal, with a focus on modernizing the production process, adding new equipment and increasing theskillsetsofemployees.

Two key outcomes from the investment will be more efficient fuel use and updates that will cut greenhouse gas emissions by 100,000tonnes, according to President and CEO SeanDonnelly.

"It's been a challenging time economically recently so these investments really help us drive our agenda forward."

Despite the newUnited States-Mexico-Canada Agreement (USMCA), a 25 per cent tariff on steel and 10 per cent tariff on aluminum remain in place.

But Bainspromised the government will fight "tooth and nail" to have the"unjust, unfair and completely ridiculous" taxes lifted.

The minister added he's been in contact with David MacNaughton, Canada's ambassador to the United States and Minister of Foreign Affairs ChrystiaFreeland about the status of talks to have the tariffs lifted.

"We're working with our American counterparts to make the case that this is not only impacting Canada, but also the U.S. as well, it's increasing costs andundermining competitiveness."

Maintaining thousands of jobs

Along with recently announced safeguards to curb steel dumping, the investment in Dofascois meant to help the country's steelmakersstay on the edge of innovation in the industry, Bainssaid.

The projectswill secure thousands of jobs in Hamilton and lead to growth thatcould mean more jobs in the future, he added.

Donnelly said the surest way to secure the future of Canadian steel is to lift the tariffs.

When asked if hebelieves the government failed by not ensuring steel was part of the USMCA agreement a position held by the union representing steelworkersDonnelly declined to comment, except to say it's "irrelevant" whether the tariffs were lifted in that negotiation or during a future discussion.

"We'll let the governments decide this and hammer it out," he said. "We need to get back to fair and free trade with the U.S."