Evraz is planning to invest $200 million in its Regina, Sask. facility, the company's largest single investment ever.

Conrad Winkler, Evraz North America's president and CEO, said the investment will allow it to remain the lowest cost producer of large diameter pipe in North America.

"We greatly appreciate the Government of Saskatchewan's role in working with us on issues facing primary steel production," Winkler said in a news release.

Saskatchewan Premier Brad Wall said this year's provincial budget has provided an incentive for new job creation.

"We are very pleased to see Evraz respond to these revenue neutral incentives with a $200 million investment that will create about 40 new jobs," Wall said.

In the 2015-16 provincial budget, the Saskatchewan government created new incentives that provide "an income tax rebate to eligible primary steel producers that make a minimum investment of $100 million in new or expanded productive capacity." This will not impact existing government revenues.

The investment will be spread out over two years and is being entirely funded by Evraz. It will include installing a new two-step large diameter line pipe mill that will increase annual production by over 100,000 tonnes.