Provincial funding to create jobs at Nanaimo, B.C., steel manufacturer

The province says the $900,000 grant will help drive a total capital investment of approximately $5 million at Niik Steel. (CTV News)

Nanaimo’s steel industry is getting a major boost, with new provincial funding aimed at expanding local manufacturing and creating jobs.

The province is investing $900,000 in Niik Steel through the BC Manufacturing Jobs Fund, helping the company increase its steel fabrication capacity.

The announcement was made Friday morning by Nanaimo–Lantzville MLA George Anderson. “What we’re seeing here is a significant increase in our ability to manufacture here in British Columbia,” Anderson said. “That means growth for the region and real economic benefits for the province.”

The funding will allow Niik Steel to triple the amount of steel it fabricates by expanding its Nanaimo facility and adding new jobs. “We’re around 70 to 80 people right now,” said Amir Jamshidi, president of Niik Steel. “The plan is to be around 200 within a year or so to help with the expansion. We already have 26 people because of this grant.”

Anderson says the fund contributes about $700 million in revenue for the provincial economy.

The steel company says it is shifting its business strategy away from U.S. exports because of tariffs, and instead will focus on projects closer to home. Those projects include major builds such as the Cowichan District Hospital, Vancouver Island University, the University of Victoria, Burnaby Hospital, and St. Paul’s Hospital in Vancouver.

“We have a lot of large projects on the Island and the mainland,” Jamshidi said. “That includes hospitals and universities — work that’s happening right here.”

As part of that shift, the company has adopted a Buy Canadian approach and recently purchased a new plate machine from a Canadian supplier.

“Previously we had a U.S. supplier,” said Jamshidi. “But because of the tariffs, we decided to shift that funding inside the country.”

The province says the $900,000 grant will help drive a total capital investment of approximately $5 million at Niik Steel, strengthening Vancouver Island’s manufacturing sector and supporting long-term economic growth.