$150M in grants and loans provided to Algoma Steel to aid in modernizationAll Articles
Algoma Steel is undertaking CAD $600 million in capital investments over an eight-year period to upgrade its existing production facility in Sault Ste Marie, Ontario.
The company will 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 project will create 50 new jobs and maintain 3000 employees.
Minister Navdeep Bains, minister of innovation, science and economic development, announced up to CAD $90 million in incentives for Canada’s largest integrated steel producer. The money includes up to CAD $60 million from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) in the form of a loan and a CAD $30 million grant through the Strategic Innovation Fund Incentive Program. The Provincial Government also committed to provide economic incentives worth CAD $60 million in the form of a repayable loan to protect Algoma’s pensioners and ensure the steelmaker remains competitive and sustainable and creates jobs in a tough market.
“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. Our investment will help Algoma innovate, strengthen the competitiveness of Sault Ste. Marie’s steel plant and support good middle-class jobs for Canadians,” said The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development.
“By investing in Algoma Steel, we’re ensuring the long-term viability of the Sault’s steel operation, thereby supporting thousands of direct and indirect middle-class jobs, as well as the current and future pensioners, that form the backbone of the Sault Ste. Marie and area economy. We’re also ensuring that Algoma’s world-class steel products continue to make it to market,” said Terry Sheehan, Member of Parliament for Sault Ste. Marie.
“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,” said Kalyan Ghosh, President and CEO, Algoma Steel Inc.
Algoma Steel, a subsidiary of Essar Global Holdings, produces and sells steel products in North America. It provides hot and cold rolled steel plate products for construction, mining, manufacturing, energy, shipbuilding and military applications; and hot and cold rolled sheet steels in carbon and HSLA grades for use in manufacturing applications of automotive industry, as well as by-products. The company was founded in 1901 and is headquartered in Sault Ste Marie, Canada.
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