As announced on Wednesday, Essar Steel has completed its acquisition of Algoma Steel, an integrated steelmaker based in Ontario, Canada.
Essar Global, through its wholly owned subsidiary, Essar Steel Holdings Limited, has acquired Algoma Steel for an equity value of $1.85 billion Canadian dollars.
Algoma Steel, which specializes in making steel sheets for the automobile industry, will help Essar Steel expand into the North American markets. The now larger company is looking to concentrate on further reducing costs of production, expanding its product range, and developing new applications.
Essar Steel Holdings Limited is a global producer of steel with a current capacity of eight million mts with expectations to increase its capacity to approximately 20 million mts by 2012. Based in Ontario, Canada, Algoma Steel Inc. is an integrated steel producer with steel shipments in 2006 totaling 2.4 million mts.