Jobs and Prosperity Fund (JPF) Awards ArcelorMittal Dofasco $22.7M
Hamilton, ON-based ArcelorMittal Dofasco is Canada’s largest steel producer and a leader of advanced manufacturing in North America. They are the city’s biggest private sector employer and ship over 4.5 million net tons of high-quality flat carbon steel every year. ArcelorMittal Dofasco partners with top automotive, energy, packaging, and construction companies to develop lighter, stronger, and more sustainable products.
The Ontario government’s Jobs and Prosperity Fund is supporting ArcelorMittal Dofasco’s Hot Mill modernization project with $22.7M in grants and loans.
The purpose of the Jobs and Prosperity Fund (JPF) is to improve Ontario businesses’ global competitiveness by investing in innovative products and processes. JPF business expansion funding is helping offset the costs of ArcelorMittal Dofasco’s Hot Mill renovation. The project includes new state-of-the-art equipment upgrades, which will significantly improve their plant in Hamilton, positioning the company for future growth in both Ontario and North America.
ArcelorMittal Dofasco Recipient of Capital Investment Grants
ArcelorMittal Dofasco is Canada’s leading flat rolled steelmaker, serving all major steel markets, with leading R&D and technology capabilities, as well as sizable captive supplies of raw materials and outstanding distribution networks. The company has presence in more than 22 countries across four continents and their Hamilton, Ontario plant employs approximately 4,700 people.
To support stability in the Canadian steel industry, ArcelorMittal Dofasco has received $15.2M as a grant and $7.5M as a loan from the Jobs and Prosperity Fund.
The company is using its business expansion funding to restore their Hot Mill. The mill provides high-quality hot rolled steel to automotive, construction, tubular, and service centre customers, and manufactures products with precise measurement, crown, and shape control for a wide variety of chemistries, qualities, and specifications.
This project is part of a larger effort to meet the demands of the automotive sector, which has been pressuring steelmakers to develop lighter vehicles to meet fuel efficiency standards. With the help of Ontario government funding, ArcelorMittal Dofasco will purchase high-tech equipment for products requiring new technology, and will be able to produce and sell higher-value products at lower costs in North America. In addition, 4,700 jobs in Hamilton will be retained.
Jobs and Prosperity Fund (JPF) Ontario Business Expansion Funding
The Jobs and Prosperity Fund provides capital investment grants to Ontario businesses with initiatives to improve global competitiveness through innovation, export expansion, and productivity enhancements. The program supports the development of new technologies so businesses can grow and create new jobs in Ontario.
To help offset the costs of qualifying projects, JPF funding provides up to 20% in government grants, up to 40% in repayable funding, or up to 40% in a combination of grants and loans.
There are four streams of the Jobs and Prosperity Fund:
- New Economy Stream: Focuses on innovative projects building productivity and international competitiveness.
- Food and Beverage Growth Fund: Focuses on innovative food and beverage technology projects.
- Strategic Partnerships Stream: Focuses on the development of enabling technologies with the potential to transform multiple industries.
- Forest Growth Fund: Focuses on improving the productivity, innovation, and competitiveness of Ontario’s forestry sector.
The Jobs and Prosperity Fund is currently open and accepting applications. To begin the application process, businesses should be able to clearly convey via comprehensive proposal how the funding will be used, how it will improve competitiveness, and how it will lead to the creation/retention of sustainable jobs.
To explore types of projects eligible for funding programs like JPF, download Mentor Works’ Key Tips: Expanding Production in Canada slide deck.
Posted: May 30, 2018 by Myra Bredin. Updated: May 30, 2018 by Myra Bredin.