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[ferro-alloys.com]The Canadian government announced Wednesday it will invest C$40 million ($29.78 million) in a C$112.6 million project to upgrade Evraz North America's facilitates in western Canada.

The investment is aimed at increasing Evraz's competitiveness in serving the oil country tubular goods (OCTG) market while decreasing emissions and the overall carbon footprint of Canada's steel industry, the government said.

"This will enable the company to produce value-added OCTG products that match Canadian market demand and make them available at a competitive price to Canadian resource firms that, like Evraz, are facing shortages owing to the cost-prohibitive effects of US tariffs," the government said in a statement.

Ralph Goodale, Canada's minister of public safety and emergency preparedness, announced the investment at Evraz's mill in Regina Wednesday.

"We committed to standing shoulder to shoulder with Canadian steel workers and supporting the innovative, world-class products they produce," Goodale said in a statement. "We are delivering. Our investment in Evraz will help strengthen the competitiveness of Regina's steel plant for years to come, maintain Canada's position in the global market and support middle-class jobs for Canadians."

The government said its investment in Evraz will create 35 jobs and maintain more than 2,100 in Regina, Saskatchewan, and Red Deer, Alberta.

In the wake of the US Section 232 tariffs on steel, the Canadian government announced in March it would be taking steps to protect its domestic metals industry, including steps to crack down on imports and making available up to C$2 billion to protect Canadian workers and businesses in the steel, aluminum and manufacturing industries.

In January, the government announced financial support of up to C$150 million for Algoma Steel Inc. and in October announced support of up to C$49.9 million in ArcelorMittal Canada.

Evraz is the largest steel company in western Canada, making steel plate and coil, small- and large-diameter pipe, and oil and gas well tubing for the energy sector. A spokesman for the company did not immediately respond to a request for comment Wednesday.

(S&P Global Platts)

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