Algoma Steel Inc. announced today it has successfully completed the purchase of substantially all of the assets of Essar Steel Algoma Inc. The business has emerged free from the protection of the Companies' Creditors Arrangement Act (CCAA) as a stronger, more sustainable Canadian steel company.
As Algoma Steel emerges it is resurrecting plans for the modernization of its facilities in Sault Ste. Marie. The new owners are committed to a CDN $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.
"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% 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."