Essar Steel Algoma is a northern Ontario steel manufacturer operating from Sault Ste. Marie, Ontario. Their products, including rolled sheet and plate metal, service customers in a variety of automotive, manufacturing, construction, and energy industries. Essar Steel has recently been announced as the recipients of $60 million in Canadian government funding, which will provide capital to modernize and expand their production facility. Federal and provincial funding, distributed evenly between the Advanced Manufacturing Fund (AMF) and a variety of Northern Ontario Heritage Fund Corporation (NOHFC) programs, will provide a 25% government contribution to the project, which is valued at $240 million.
Essar Steel’s Government Funding for Manufacturing Success
The multi-million dollar business funding allocation will benefit several projects planned by Essar Steel. The company will be upgrading their direct strip production complex, adopting a variety of new automation technologies, and installing a new steel refining system. These activities are components of their overall expansion, modernization, and diversification strategies.
The steel manufacturer believes that these projects will contribute to new abilities, such as the production of more steel grades, and increases to their product’s quality and production speed. Such benefits will ensure that the company is able to meet the increased demand it’s been receiving. In addition to the company’s benefits, a total of 200 new jobs will be created while over 7,500 Ontario jobs will be directly and indirectly sustained.
“This massive investment will help to ensure Essar Steel Algoma remains competitive for years to come, while building industry-leading capacities to produce a broader range of products as well as allowing for the increase in total steel output.”
– David Orazietti, Natural Resources Minister and the MPP for Sault Ste. Marie
Government Funding Accessed to Fund Expansion Projects
Essar Steel successfully obtained Ontario government grants and loans from popular funding programs, including the Advanced Manufacturing Fund (AMF) and Northern Ontario Heritage Fund Corporation (NOHFC) programs. By stacking these business funding programs, Essar Steel will be able to leverage up to $60 million in Ontario government funding.
“This investment will help sustain the jobs here at the steelworks and improve reliability, productivity, and our competitive position, which certainly bodes well for the future and the sustainability of our operation here in Sault Ste. Marie.”
– Brenda Stenta, Manager of Corporate Communications for Essar Steel Algoma
The Advanced Manufacturing Fund (AMF) provides repayable Ontario government funding to boost competitiveness, increase productivity, and promote innovation for manufacturers in Ontario. Funded by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), the funding provided to Essar Steel is the first AMF win by a northern Ontario business. AMF provides up to 50% of eligible expenses for manufacturing research and development projects that develop innovative products or production methods. Businesses and NFPs can recover a variety of project expenses with AMF, including labour fees, machinery, equipment, and other capital expenses that lead to product or process innovation.
The Northern Ontario Heritage Fund Corporation (NOHFC) administers several Ontario government grants and loans specifically tailored to the unique business conditions in northern Ontario. They focus on new technology development, increasing quality jobs, providing critical infrastructure, and generating clean energy, among other initiatives. To learn more about how NOHFC programs can help your Northern Ontario manufacturing business, contact Mentor Works and our team of Canadian Government Funding Experts will assist you to identify the right funding program to apply for.
Stay Updated on Government Funding News: Business owners and executives can have this and other Canadian government funding news delivered to their inbox weekly. Register for Mentor Works’ small business funding e-newsletter to never miss an article.
- Government of Ontario Launches $5M Critical Minerals Innovation Fund
- New Intake Open for O-AMP Automotive Grants Up to $150K
- Ontario Manufacturing Companies Receive Combined $24M in Funding
- Optimizing Your Factory Layout for Increased Productivity
- Next-Generation Automotive Manufacturing Materials and Processes