Algoma completes Essar asset purchase, poised for modernization expansion
Algoma Steel Inc. announced it has completed the purchase of substantially all of the assets of Essar Steel Algoma Inc.
“When we take a look around at the domestic and international steel markets, what we see is a lot of room for growth for Algoma Steel,” says Kalyan Ghosh, Chief Executive Officer of Algoma Steel. “We have a long and proud history in Canada, manufacturing 100 per cent of our products right here in Sault Ste. Marie. Today Algoma Steel is an independent and strong niche player, manufacturing a comprehensive mix of hot and cold rolled steel sheet and plate products not just for the Canadian markets, but also beyond.”
Under new ownership and the direction of a professional board of directors, Algoma Steel has a significantly improved its balance sheet, offering financial stability, secure pensions, and employment for more than 2,900 workers in Sault Ste. Marie, Ont.
Algoma Steel is resurrecting plans for the modernization of its facilities in Sault Ste. Marie, with the new owners committing to a $300 million investment in the steelworks to expand capacity and grade capability, making Algoma Steel more efficient and globally competitive. This investment will position Algoma Steel to meet the growing demand for advanced grades of steel and to support growth in related industries like shipbuilding, auto manufacturing, energy, mining and defense.
The company is also returning to financial stability with a strong, healthy balance sheet and substantially less debt.
“Today, we’re hiring. We are coming out of this restructuring positioned for growth, thanks in great part to the determination and professionalism demonstrated by our employees in the face of uncertainty,” says Ghosh. “We are eternally thankful for the patience of our suppliers and the confidence expressed by our customers through this process.”