A Chicago-based producer of engineered steel products for rail, energy and industrial end markets recently received funding for equipment upgrades and plant expansions—including the company’s planned installation of a state-of-the-art heat treat line—as part of the Government of Canada’s steel and aluminum fund program created to energize the Canadian steel industry.
EVRAZ North America will receive C$40 million from Innovation, Science and Economic Development Canada’s Strategic Innovation Fund (SIF) steel and aluminum program, which was created last year to help bolster the competitiveness of the industry in Canada.
The $40 million in Strategic Innovation Funds will be part of a $112 million investment over the next three years in EVRAZ North America facilities in Regina and Red Deer, Alberta, focusing on upgrades to steelmaking infrastructure that will improve quality, boost efficiency, reduce emissions and increase capacity, including:
- Red Deer Heat Treat Expansion: EVRAZ North America is installing a state-of-the-art heat treat line that will greatly increase the company’s capability to provide premium alloy grade quality in the OCTG product range meeting the evolving needs of our customers.
- Electric Arc Furnace Power Increase: Regina’s electric arc furnace is used to melt scrap metal that is recycled into steel. The project will replace electrical transformers and associated power distribution equipment, including building a new substation feeding the facility’s 138kV SaskPower hydro line.
- Reheat Furnace Throughput Increase: The reheat furnace at the Regina rolling mill is used to heat steel slab to temperatures of more than 2,200°C for production into coil and plate. The investment in upgraded burner equipment will increase and expand the production capability of the reheat furnace while reducing NOx emissions.
Investments at these facilities will be made between 2019 and 2021.
At a ceremony in Regina, Saskatchewan, EVRAZ President and Chief Executive Officer Conrad Winkler praised the Government of Canada’s actions.
“This government recognizes the challenges facing Canadian steel producers and the thousands of employees working in steel mills across the county, including 1,200 right here in Regina,” said Winkler. “Partnerships such as the Strategic Innovation Fund are crucial to our job-creating, long-term investments.”
The SIF contribution is part of EVRAZ’s North America’s planned, multi-year C$112 million investment into equipment upgrades and expansion at the company’s mills in Regina and Red Deer, Alberta. When completed, the improvements will further boost EVRAZ North America’s steelmaking capacity, reduce emissions, and improve efficiency. The company previously invested more than C$200 million in expansion and upgrades in Regina between 2015 and 2017.
“With this SIF partnership, we can move forward with these investments that will allow EVRAZ North America to maintain and grow its position as an industry-leading supplier for our valued customers in Canada’s energy economy,” said Winkler.
