The move marks the largest single investment in the facility in the company’s history.
Spanning the next two years the investment will include installation of a new two-step large diameter line pipe mill. It will enable the production of larger, thicker-wall pipe and increase annual production capacity by over 100,000 tons.
Evraz is also making state-of-the-art upgrades in steelmaking including degassing and the ability to make larger steel slab sizes. Additionally, the power and size of its rolling mill will be increased to make thicker, wider steel coils.
Evraz president and CEO Conrad Winkler said in a news release the changes will provide stability for its 1,000 Regina employees. As well, 40 new jobs will be created.
Evraz is able to take advantage of a new tax incentive — introduced by the Saskatchewan government in the 2015-16 budget — that offers a rebate to eligible primary steel producers that make the minimum capital investment of $100 million in new or expanded productive capacity.
Evraz and energy company Enbridge also announced that the two companies will partner on a joint research and development program to enhance pipeline performance. Along with industry and academic institutions, Evraz and Enbridge will help drive continuous improvement with the ultimate aim of optimizing industry-wide safety and reliability.