NEW YORK Wire rod producer Ivaco Rolling Mills LP is on schedule to complete its new melt shop by March of next year.
The Canadian $80-million ($79.4-million) melt shop will increase the volume and variety of steel billets the company makes and will apply technology currently not being used in North America, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) told AMM.
"Once they have a new melt shop, theyll make everything themselves," a wire rod mill source familiar with the upgrade said. "Theyre going to wean themselves off their billet supplier."
Ivaco has an annual wire rod capacity of 850,000 tons, which is much larger than its steel billet capacity of 450,000 tons, according to its website. A source familiar with the operation said the sitelike most others in the steel industryhas been running somewhat below its nameplate capacity rate.
FedDev Ontario awarded the LOrignal, Ontario-based mill a $10-million repayable contribution to upgrade its facility (amm.com, March 12). The new melt shop will create 50 new permanent jobs at the plant and 200 short-term construction jobs, the agency said.
Ivaco declined to comment on the expansion.