EVRAZ making $200M investment into Regina facility

EVRAZ will be making its biggest investment yet into its Regina facility.

On Tuesday, Premier Brad Wall, Minister of the Economy Bill Boyd, and Regina Mayor Michael Fougere joined EVRAZ and Enbridge representatives to announce a $200 million investiment into the facility.

The investment will see the installation of a new, two-step large diameter line pipemill which will enable the facility to construct larger, thicker-wall pipe. It will also increase the production capacity by more than 100,000 tons.

“This investment will secure our position as the highest-quality, lowest-cost integrated producer of large diameter pipe in North America,” said Conrad Winkler, EVRAZ North America president and CEO, in a statement.

The recent provincial budget included a corporate tax rebate to encourage investments in primary steel production. The rebate is to be triggered by a minimum investment of $100 million in new or expanded steel production by an “eligible” steel producer. 

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“Not only did the budget avoid any tax increases, we also wanted to provide an incentive for new job creation in export manufacturing and processing and so we are very pleased to see EVRAZ respond to these revenue neutral incentives with a $200 million invest-ment that will create about 40 new jobs,” said Premier Brad Wall in a statement.

The rebate period is set for five years. Because they would produce more, they would owe more in income tax. The company is expected to pay their income tax and get reimbursed for what they had to pay extra for increasing capacity.  

This rebate would see that in the first two years, the company be reimbursed for the full amount of the incremental increase in taxes. In the third year, they’d get back 75 per cent, in the fourth year, they’d be reimbursed for 50 per cent and in the final year, they’d receive 25 per cent.  

The steel producer would have 10 years to claim the rebate.  

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