Canada and Ontario invest $150M in Algoma Steel
January 11, 2019 – Algoma Steel, Canada's second-largest steel producer, will receive investments from the federal and Ontario governments totalling $150 million.
The federal government is investing up to $90 million to create and maintain 3,050 jobs in Sault Ste. Marie, Ontario, and the provincial government is investing a $60 million repayable loan.
The company manufactures rolled steel products, including sheet and plate, and has a production capacity of four million tons.
Algoma Steel has announced $600 million in capital investments over an eight-year period to launch projects that will adopt new technologies, improve productivity and sustain competitiveness in the global market. These improvements will help Algoma Steel modernize its core production assets, including the steel rolling and steel plate mills, which will position the company to offer a wider range of steel grades and increase production capabilities.
The $90 million federal investment includes up to $60 million from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) and $30 million from Innovation, Science and Economic Development Canada's Strategic Innovation Fund.
Algoma Steel exits creditor protection; plans to invest $300M
"In these challenging times for Algoma, and in the face of unfair and unjust tariffs, we are committed to standing shoulder to shoulder with our hard-working steel and aluminum workers, their families and their communities," says Navdeep Bains, minister of innovation, science and economic development. "Our investment will help Algoma innovate, strengthen the competitiveness of Sault Ste. Marie's steel plant and support good middle-class jobs for Canadians."
The provincial investment will be used to extend asset life and reduce the company's environmental footprint, says Kalyan Ghosh, president and CEO of Algoma Steel.
"This support is vital to our modernization initiative, enabling us to grow and sustain our competitive position as an advanced manufacturer in Canada. We greatly appreciate the government's continued advocacy for Canadian steel," says Ghosh.
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