Government of Canada Supports Jobs and Growth at Ivaco Rolling Mills

L'ORIGNAL, ONTARIO--(Marketwire - March 12, 2012) - Government of Canada funding will help support the expansion of Ivaco Rolling Mills, one of the largest producers of steel wire rod in North America and one of the area's main employers. The announcement was made today by Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), accompanied by Pierre Lemieux, Member of Parliament for Glengarry-Prescott-Russell.

"Our investment will increase the Ivaco Rolling Mills' production capacity and product line, allowing the company to offer higher quality products and improve its competitive position in global markets," said Minister Goodyear.

"This project will also have many local benefits, from creating short-term construction jobs to adding permanent jobs at the company, which is the largest employer in L'Orignal and Hawkesbury," said MP Lemieux.

A contribution of up to $10 million through FedDev Ontario's Prosperity Initiative will help Ivaco Rolling Mills with an $80 million project to expand and upgrade its steel plant. This will enable the company to increase the volume and variety of steel billets it produces, and support its steel wire rod production capacity. This project will introduce cost-saving technology to improve profitability and reduce the environmental impact of its operations. The project will also lead to the creation of local jobs.

The Government of Canada's contribution is contingent on the successful completion of a federal environmental assessment of the proposed project under the Canadian Environmental Assessment Act.

"The FedDev Ontario Prosperity Initiative clearly demonstrates the importance that the government has placed in ensuring that Canada maintains its technological lead in steel manufacturing, while at the same time, creating and preserving jobs both in the plant and surrounding communities," stated Giorgio Piliu President and CEO of Ivaco.

For more information about the project and the Prosperity Initiative, please refer to the backgrounder.

The investment announced today supports the Government of Canada's science, technology and innovation agenda, which is focused on increasing the country's productivity, creating jobs and growing the economy.

Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. The Agency has launched a number of initiatives to create a Southern Ontario Advantage and place the region in a strong position to compete in the global economy. These initiatives are designed to encourage partnerships and support projects that help the region's businesses and communities become more competitive, innovative and diversified. To learn more, please visit www.feddevontario.gc.ca or call 1-866-593-5505.

BACKGROUNDER

Contribution to Ivaco Rolling Mills

Ivaco Rolling Mills produces the largest variety of wire rod sizes of any North American rolling mill for the automotive, oil and gas, mining and construction industries both in Canada and around the world. The rolling mill was originally constructed in 1971, followed by the addition of a steel plant to supply the mill with steel billets in 1975.

FedDev Ontario is providing Ivaco Rolling Mills with a repayable contribution of up to $10 million for the company's $80 million expansion project. Upgrades to the steel plant will allow the company to increase its production of steel billets by 225,000 tons annually and to produce different grades and higher quality steel billets. The availability of these higher quality grades of steel billets will allow the rolling mill to increase production, further penetrate and expand its market share and enter new markets not currently served.

The expansion will also introduce advanced steel billet technology that is not yet being used in a rod rolling mill in North America. This technology will allow Ivaco Rolling Mills to introduce new grades of steel to its process and expand its product line.

This investment through FedDev Ontario's Prosperity Initiative will help the company become a North American leader in the implementation of the new technology - creating a competitive advantage for southern Ontario. It will also allow the company to better compete in the global marketplace with new products and processes that enhance productivity and environmental responsibility. The company anticipates creating 50 new permanent jobs and 200 short-term construction jobs.

More information is available at http://www.ivacorm.com/

Prosperity Initiative

FedDev Ontario's Prosperity Initiative is designed to encourage businesses, not-for-profit organizations and post-secondary institutions in southern Ontario to undertake projects that will result in a more productive, diversified and competitive economy.

Funding is available for projects that:

• enhance productivity by accelerating the adoption of new technologies, processes and skills that enhance the region's businesses and sectors;
• diversify the regional economy by increasing the number of new industries or opportunities with the potential to have long-term impacts on regional economic diversity; and
• build a competitive advantage in the region by creating or expanding economic clusters and enhancing their global competitiveness.

Applications for funding are being accepted and assessed on an ongoing basis. For more information, please refer to the Program Guidelines available on the FedDev Ontario website at www.feddevontario.gc.ca.