Monday , July 26 2021

$ 150 million in loans to help Algoma Steel Inc. restructure, modernize operations (3 photos)



The federal government is providing Algoma Steel Inc. with $ 90 million in "refundable contributions" to help Sault Ste. Steelmaker Marie handles US steel and aluminum tariffs.

Ontario also lent $ 60 million to the steel production operation to support its restructuring process.

Minister of Economic Development Navdeep Bains and Northern Ontario Development Minister Greg Rickford were accompanied by Sault Ste. Marie MP Terry Sheehan and Sault Ste. Marie MPP Ross Romano at the steel plant Thursday afternoon for make the announcement.

"This $ 90 million federal government investment really reflects the fact that we are side by side with steelmakers and the steel industry, and that investment is to modernize the factory to make it more competitive," Bains told reporters. . announcement. "It's really a long-term investment to ensure the safety and maintenance of more than 3,000 jobs in Sault Ste. Marie.

Support comes at a time when steel and aluminum producers are facing the tariffs imposed by US President Donald Trump last June.

Ottawa has been struggling to remove these tariffs – even by imposing its own tariffs on a number of US-imported goods – but collections against Canada are still in effect.

Last summer, Ottawa announced a tariff relief package that included up to $ 2 billion for the steel, aluminum and manufacturing sectors, with $ 1.7 billion in financing and services for the steel and aluminum industries through the Bank of Business Development Canada and Export Development Canada.

"We will continue to get involved in the US administration," Bains said. "Prime Minister Trudeau spoke to President Trump about this issue."

My colleagues Chrystia Freeland, Bill Morneau and I have been working with our colleagues, "he continued. "This is a priority for our government – we want to see these unjust and unjust tariffs removed."

Bains says the investment in Algoma Steel Inc. – which is part of the steelmaker's $ 600 million commitment to modernize its operations while expanding capacity and upgrading capabilities for advanced steel grades – will help the company remain competitive in the future.

"It's about being more competitive," Bains said. "It is about investing the modernization of the plant, which will [Algoma Steel Inc.] to succeed in the long run. "

Meanwhile, the provincial government says the $ 60 million loan to Algoma Steel Inc. will provide regulatory retirement relief and eligibility for coverage under the Social Security Benefit Fund.

Rickford told reporters that the loan will give pensioners access to a safe and dependable pension.

"We're creating an opportunity and responsible use of taxpayer dollars," Rickford said. "I think the most important narrative here is the three steps that essentially facilitated the restructuring and put Algoma in a solid fit."

The province has also negotiated an agreement that requires Algoma Steel Inc. to invest $ 3.8 million a year over the next 21 years to identify and remedy past environmental contamination.

"To facilitate the restructuring, we have taken a step forward with Algoma Steel through a process we believe is fair, reasonable and responsible in terms of protecting the environment and a plan to remediate old sites," Rickford said.

Algoma Steel Inc. CEO Kalyan Ghosh told reporters that the modernization and expansion program will allow the plant to produce new types of steel for the automotive industry and increase the capacity and capacity of the steel sheet and strip mill.

– with files from Canadian Press


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