Galvanizing line at Algoma Steel could create 60 jobs

Lappin Industries Inc. is proposing a new electro-galvanizing line at Algoma Steel that's expected to create the equivalent of 60 full-time jobs well before it reaches full production.

The Sault-based company is planning to buy an existing galvanizing line from a bankrupt steelmaker in Cleveland and move it here.

Galvanizing is the process of coating steel with zinc to provide greater resistance to corrosion. Galvanized steel is used extensively in the auto manufacturing industry, as well as in bridges, duct work, light poles and other products.

It's expected that the project will create 20 construction and consulting positions over six months as the new line is installed in the steel plant.

It will employ the equivalent of 60 full-time workers by the time its annual production reaches 93,600 tons.

The line is expected to produce 125,000 tons a year, with earnings estimated at $6 million, according to documents filed with the Sault Ste. Marie Economic Development Corporation.

City asked for $17,500 for feasibility study

Sault City Council will be asked tonight to approve a $17,500 municipal contribution toward the $70,000 cost of developing a feasibility study, business plan, and seeking financing.

Lappin will provide $17,500 and FedNor is being asked for the remaining $35,000.

Tony Porcheron with the Mississauga office of Dundee Securities Corp. has had preliminary discussions with investment firms and venture capitalists. He reports that interest has already been expressed by his firm, as well as by Vengrowth, Talvest, Working Ventures and others.

Algoma Steel will rent space to new firm

"The development of value-added business within the immediate vicinity of the steel plant would be beneficial to Algoma Steel and thge community," says Glen Manchester, Algoma Steel's senior vice president.

"Algoma has limited resources but is prepared to rent space and sell coils at market prices for a galvanizing line," Manchester says.

Robert Cohen, president of Traders Metal Co. Ltd., says the new line would create numerous spinoffs in the industrial service sector, including machining, electrical, industrial maintenance and fabrication.

If the City and FedNor agree to support the feasibility study, it will be carried out by the Sault office of KPMG.

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