Federal government announces $40 million for Evraz

The federal government of Canada is throwing support behind the steel industry.

In an announcement today at the Evraz facility in Regina, Minister Ralph Goodale said the government would be giving the company$40 million through the Strategic Innovation Fund.

The money comes as the US government's ongoing tariffs on aluminum and steel remain in place.

Goodale saidthe government of Canada is continuing "relentless" efforts to remove the American tariffs, something he said has become a top priority for Prime Minister Justin Trudeau and minister of foreign affairs Chrystia Freeland.

Goodale said that Wednesday's funding announcement shows Evraz and its employees that Canada, "has your back."

More investments coming: Evraz CEO

Conrad Winkler, the president and CEO of Evraz, said therehas been over $200 millioninvested into Regina's facility since 2015 and that more iscoming in the future.

Winkler said there are plans to invest more than$112 million over three years toexpand the production capabilities in Regina and atEvraz'smill in Red Deer,Alta.

"I'm confident these investments will allow Evraz North America to maintain and grow our position as an industry leading supplier to our valued customers," he said.

Tariffs made 2018 a difficult year for Evraz

Winkler noted that through 2018, the company was completing a number of large projects in the United States.

He said Evraz also has quite a few facilities in the United Statesand that, because of the tariffs, the steel heading back to Canada was either reduced or cut off, which has had a significant impact on Evraz's business.

"The impact in 2019 should be considerably less," he said. "That's why the approval of Trans-Mountain, Coastal Gas Link, Enbridge Line 3 are so critical to our operations here in Canada."

Winkler said based on the investments the company has made, they are counting on continued pipeline construction throughout North America. He said their focus over the next few years will be on "infrastructure development associated with Canadian pipelines."