Algoma Steel decides to apply Market Adjustment Plan

Algoma Steel decides to apply Market Adjustment Plan

Algoma Steel is an integrated steel producer located in Sault Ste. Marie, Canada which derives revenues from manufacture and sale of rolled steel products that includes hot and cold rolled sheet and plate, has initiated a 90 day Market Adjustment Plan in order to keep the company cash flow positive while steel markets decline. Algoma Steel plans to decrease the annual operating cost by $40 million in order to compensate for declining prices, increasing energy and other costs and strengthening Canadian dollar. In addition, Algoma has a target to increase EBITDA by $100 million annually over the next three years. This Market Adjustment Plan aims to focus on all operation areas of the company. It will include the reduction of workforce and working capital, continuous evaluation of all facilities to ensure positive cash flow and also the scaling back or elimination of non-critical activities.