Canadian Manufacturing

Government investing $400M in Hamilton’s steel industry

The funding will support ArcelorMittal Dofasco's adoption of innovative low-carbon technology.

August 3, 2021  by CM Staff

The Canadian government is making a federal investment of $400 million in ArcelorMittal Dofasco G.P., said to be Canada’s largest producer of flat-rolled steel.

The investment will support a $1.765-billion project to convert the steel production process and phase out coal-fired steelmaking at its facilities in Hamilton, Ontario.

“This investment will support ArcelorMittal Dofasco in becoming the world’s first producer to transition to a hydrogen-ready, direct reduced iron–fed electric arc furnace at this scale for the development of advanced steels that serve the automotive, medical and consumer packaging industries,” the government said in a news release. “Lower-emissions advanced steel is in demand for products like electric vehicles, helping Canada to be a leader in manufacturing the clean end-to-end goods the global market increasingly demands. The transition will result in higher productivity, product quality and energy efficiency at ArcelorMittal Dofasco.”

The project is expected to support as many as 2,500 construction jobs through subcontracting, while maintaining Dofasco’s strong employment position in Hamilton, and provide upskilling opportunities for workers.

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In the news release, the government said the project will make a “significant contribution” toward Canada’s achieving its climate goals, reducing greenhouse gas (GHG) emissions by up to 3 million tonnes per year by 2030. “Together with the Algoma Steel project announced on July 5, 2021, the two projects will reduce GHG emissions by up to 6 million tonnes per year,” the release said. “This is equivalent to taking more than 1,800,000 passenger vehicles off the road, almost the number of passenger vehicles in Toronto, Montréal and Vancouver combined.”

Headquartered in Hamilton, ArcelorMittal Dofasco is that city’s largest private sector employer.