A new federal loans program to help steel, aluminum, and copper companies weather U.S. tariffs is falling short of the mark with Chatham-Kent companies.
The Government of Canada announced $1.5 billion on Monday to support several tariffed industries, including a new $1 billion Business Development Bank of Canada program to aid industries that manufacture and export products containing steel, aluminum or copper.
The government is also providing an additional $500 million through the Regional Tariff Response Initiative to help ensure that smaller companies have access to the financing they need to change direction and enhance production if necessary.
Jamie Neil, Interim President of Dajcor Aluminum in Chatham, told CK News Today the loans are a step in the right direction, but still don't address the underlying issues.
"While improved access to liquidity may help businesses manage short-term financial strain, it does not address the underlying structural challenges threatening the long-term competitiveness of our industry. Without targeted measures to restore fair market conditions, these pressures will persist," said Neil.
Dajcor is part of the Canadian Coalition of Aluminum Extruders and Neil noted the coalition is advocating for measures aligned with those implemented in the steel sector, which effectively address import surges from non-market and low-cost regions.
Neil noted three structural challenges facing the aluminum industry:
A significant reduction in export access to the United States due to Section 232 tariffs
Contracting domestic demand driven by a slowing Canadian economy
Increasing import pressure from low-cost regions, as global producers displaced from the U.S. market redirect volumes into Canada
Neil said the coalition continues to actively engage with government partners to advance solutions that support a level playing field.
"We look forward to continued collaboration to deliver a comprehensive and durable policy response that strengthens Canada’s aluminum extrusion industry and the broader manufacturing supply chain," Neil stated.
Bill Munns, General Manager of Maple Industries Ltd., a steel fabricator in Chatham, told CK News Today the new loan doesn't do much and the other is just a top up.
Munns said the steel industry doesn't need any more bail outs, it needs opportunities, adding he's still waiting for the measures they requested.
