Algoma Steel exits three years of creditor protection in hiring mode
Coils of steel are seen at the Direct Strip Production Complex at Essar Steel Algoma in Sault Ste. Marie, Ont., on Wednesday, March 14, 2018. (THE CANADIAN PRESS/Justin Tang)
The Canadian Press
Published Friday, November 30, 2018 7:33PM EST
SAULT STE. MARIE, Ont. -- Algoma Steel Inc. says it has emerged from three years of creditor protection.
The Sault Ste. Marie, Ont., company said Friday that it has purchased the assets of Essar Steel Algoma Inc., and is a stronger, more sustainable Canadian steelmaker.
In operation since 1901, Algoma Steel employs more than 2,900 workers and is in the process of hiring.
It has a capacity to manufacture 2.8 million tons of hot and cold-rolled steel sheet and plate products that are sold in Canada and abroad.
The company says its has financial stability with a healthy balance sheet and substantially less debt and three defined benefit pension plans that are secure.
It says the new owners are committed to invest $300 million to expand capacity and grade capability to make Algoma Steel more efficient and competitive to meet demand from industries like shipbuilding, auto manufacturing, energy, mining and defence.
"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," CEO Kalyan Ghosh said.