A bankrupt steel galvanizer from Cleveland is prepared to move an electro-galvanizing line to Algoma Steel.
Lappin Industries Inc., a new Sault-based company, is planning to buy the galvanizing line, which is the process of coating steel with zinc to provide greater corrosion resistance. The purchase will create 60 full-time jobs at full production.
About 20 construction and consulting jobs will be created over the next six months as the new line is installed in the plant.
Galvanized steel is used in bridges, duct work, light poles and other products, and extensively in the auto industry. The steelmaker, which has been looking for value-added business to sell coils, will lease space to the new company.
The line is expected to produce 125,000 tonnes a year.
The new line is expected to create a number of spinoffs locally in the machining, electrical, industrial maintenance and fabrication industries.
The city has chipped in with $17,500 for a feasibility study. FedNor has also been approached for $35,000 in funding.
