Quebec steel company building $50M plant in Hamilton’s Red Hill Business Park
Announcement builds on a busy couple of weeks with over $900 million pledged in projects
https://www.thespec.com/news-story/9...business-park/
A Quebec steel company is expanding to Hamilton with a plant in the Red Hill Business Park.
The 100,000-square-foot galvanizing plant will cost between $50 million and $100 million to build and will employ about 100 when it is finished later next year, said Corbec CEO John Hall.
Construction at a Nebo Road and Twenty Road East site is expected to begin next month, next door to Canada Bread and Maple Leaf.
It's the first Ontario plant for 50-year-old Corbec, which runs steel-tip galvanizing plants in Montreal and Quebec City that add corrosion protection to everything from hydro transmission towers to stop sign posts.
"We serve thousands of customers across a multitude of industries and we believe that Ontario is underserved with capacity," said Hall, who estimates annual sales at the Hamilton plant will be between $25 million and $50 million.
He describes the private company's process as a service for steel fabricators "that has more in common with a car wash," with steel components dropped into vats of molten zinc.
Corbec has been serving southern Ontario clients from Quebec, but Hall said they made the move "because there are twice the number of steel fabricators here compared with Quebec."
And a Hamilton base provides an opportunity to serve U.S. customers. "It's not a big part of strategy, but being close to the border will help," Hall said.
Though Hall has competitors in Ontario, he believes there "is room for another plant," in part because of what he sees in the growing need for galvanized steel in niche markets such as boat trailers.
"There has been huge growth in this market in Quebec," Hall said.
"We don't think we will be taking any business away from competitors — if anything we will be taking business away from our Quebec operation that was exporting into Ontario."
And he is closely watching Ontario construction codes on steel rods that reinforce concrete in large infrastructure projects. Quebec has moved to require that these reinforcing rods be galvanized to guard against corrosion.
Calcium spread on icy roads in winter will mix with water and penetrate untreated rods, causing them to flake and weaken the concrete structure they are meant to support, he said.
The replacement of sections of hydro transmission towers has been a feature of Corbec's business in Quebec. Though he said general contractors would be the direct contact with Hydro One, Hall said he is aware that the Independent Electricity System Operator (IESO) is authorizing a number of upgrades in Ontario.
The Corbec announcement adds to a busy couple of weeks in investment activity in Hamilton, with over $900 million pledged to projects.
These recent projects include DHL's $100-million expansion of airport cargo operations; the launch of Panattoni's $30-million Aeropark warehouse; a $40-million expansion of the Mondelez candy plant in west Hamilton; and the pending deal for Hamilton City Centre by IN8 Developments for a $700-million reinvention of the downtown mall.
The Corbec plant will be officially opened Nov. 7,with Flamborough-Glanbrook MPP Donna Skelly and other senior officials from the City of Hamilton.
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