Gerdau, the largest Latin American manufacturer of long products in São Paulo, will receive $ 20 million from the Canadian government to modernize its steel mills in Ontario.
According to a company press release, investments under the Strategic Innovation Fund program under the Department of Innovation, Science and Economics will support the company's previously announced $ 81.2 million project to modernize its steel plants in Whitby and Cambridge. The modernization is expected to create 108 new jobs, in addition to maintaining the existing 710 jobs at these sites.
The proposed government investment will support the modernization of steel production lines and lower production costs at the plant. In addition, it also aims to ensure tighter control over the amount of scrap that ends up in landfills and improve the ability to produce billets.
Chia Yuan Wang, President of Gerdau Long Steel North America, reaffirmed the company's commitment to innovate and drive strategic investments to protect the environment and improve production efficiency. The project will help Gerdau continue to produce world-class steel in Ontario, Wang said.