FedNor’s $3.25 Million Investment Powers Wabi Iron & Steel’s Growth in Northern Ontario
On January 28, 2025, the Federal Economic Development Agency for Northern Ontario announced a $3,250,000 investment into Wabi Iron & Steel Corp. The funding, part of the Regional Economic Growth Through Innovation Fund, is intended to support the company’s expansion and modernization efforts, creating more than 43 new jobs and fostering economic growth in the Temiskaming Shores region of Northern Ontario.
The investment will primarily be used to upgrade Wabi’s foundry, which is the only facility of its kind in the region. The foundry’s expansion has been identified as a strategic priority by Wabi Iron & Steel in its long-term plan, ensuring the company’s success and sustainability for the next 100 years.
Enhancing Production Capacity with Energy-Efficient Equipment
With this infusion of funds, Wabi Iron & Steel plans to purchase specialized energy-efficient equipment that will allow the foundry to produce larger products and increase production output. This upgrade is expected to help the company grow its market share and significantly boost its revenue, projecting a tripling of revenue by 2027. The company’s ability to scale up will also make it more competitive in the marketplace, opening doors to larger contracts and new business opportunities, especially in the mining sector.
As the only foundry in Northern Ontario, Wabi plays a pivotal role in the region's mining industry, which is vital to Canada’s economy. The company specializes in the development and manufacture of loading and conveyance systems for mining operations, alongside being a premier producer of abrasion-resistant castings in iron and steel. These products are shipped to clients across Canada, the United States, Mexico, and South America.
Job Creation and Strengthening Local Manufacturing
The FedNor funding is expected to have a positive impact not only on the company but also on the surrounding community. 43 new jobs will be created, contributing to Northern Ontario’s economic prosperity and further solidifying the region’s standing as a leader in manufacturing and mining supply chain innovation.
Northern Ontario’s mining and manufacturing sectors are critical to the mining supply chain, particularly as Canada continues to secure its position as a global leader in the extraction and processing of critical minerals. The government’s support of Wabi Iron & Steel helps to further strengthen these sectors, ensuring that they remain competitive on the global stage.
Government and Corporate Support
In his announcement, Anthony Rota, the Member of Parliament for Nipissing—Timiskaming, emphasized the importance of this investment in ensuring that Northern Ontario remains an economic hub for mining and manufacturing. According to Rota, the funding will not only help Wabi Iron & Steel grow but will also support the region’s mining and critical minerals sectors for generations to come.
Patty Hajdu, the Minister of Indigenous Services and Minister responsible for FedNor, echoed this sentiment, stating that the investment would help create multi-generational job opportunities in the region while ensuring the continued success of Northern Ontario’s mining and manufacturing sectors. The government’s focus is on building a strong, sustainable economy that works for all Canadians.
Darryl Gutscher, the President of Wabi Iron & Steel Corp., expressed excitement about the partnership with FedNor, stating that the investment is a significant step towards securing the future of the company and positioning it for continued success. The expansion of the foundry will allow Wabi to meet the increasing demand from its clients while creating local jobs and strengthening the company's global position.
A Look Ahead: Northern Ontario’s Role in the Mining Supply Chain
This investment represents a historic moment for Wabi Iron & Steel and the Temiskaming Shores region. By modernizing its production capacity and introducing energy-efficient technologies, Wabi aims to maintain its leadership role in the mining and manufacturing sectors for decades to come. The company’s integrated Mine Equipment and Foundry Divisions ensure it remains a one-stop-shop for manufacturing solutions, providing clients with high-quality products delivered on time and to specification.
The region’s continued investment in manufacturing and mining-related industries will help to diversify the local economy, creating a stronger foundation for future generations. As Northern Ontario becomes increasingly recognized as a hub for critical minerals, companies like Wabi Iron & Steel are well-positioned to lead the charge in innovative steelmaking and mining supply solutions.
By investing in Wabi Iron & Steel, the Government of Canada is fostering a thriving economy that will provide lasting benefits to the region while reinforcing Canada’s standing as a global leader in the critical minerals sector. This partnership underscores the importance of supporting local businesses to ensure their growth and sustainability in an increasingly competitive global market.
