$ 150 million in loans to help Algoma Steel Inc. in restructuring, business modernization (3 photos)


The federal government provides Algoma Steel Inc. $ 90 million for "refundable contributions" for Sault Ste. Marie steelmaker deals with US tariffs for steel and aluminum.

In addition, Ontario's lending industry is $ 60 million to support the restructuring process.

Minister of Economic Development Navdeep Bains and Ontario, Northern Development Minister Greg Rickford, joined Sault Ste. Marie MP Terry Sheehan and Sault Ste. Marie MPP Ross Romano on the steelmaker on Thursday afternoon to announce.

"The fact that the $ 90 million investment of the federal government truly reflects the fact that we stand together with the steel industry and the steel industry, and that investments are aimed at modernizing the plant to make it more competitive," he told reporters Bains. forecast. "It's really a long-term investment to provide and maintain over 3,000 jobs in Sault Ste. Marie. "

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

Ottawa is struggling to eliminate these tariffs – even the introduction of own prices for a number of imported US products – but duties towards Canada are still in force.

Last summer, Ottawa announced a tariff package that included up to $ 2 billion for the steel, aluminum and manufacturing sectors, with an additional $ 1.7 billion funding and services dedicated to the steel and aluminum industries through Canada's Business Development Bank and Canada's Export Development.

"We will continue to work with the US administration," Bains said. "President Trudeau talked with President Trump on this issue."

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

Bains says an investment in Algoma Steel Inc., a part of its $ 600-million-strong commitment to a steel manufacturer to modernize its operations and increase capacity and improve its capacity for advanced steel grades, will help the company remain competitive.

"It's about competitiveness," Bains said. "It is about investing in the modernization of the power plant that will enable it [Algoma Steel Inc.] to succeed in the long run. "

Meanwhile, the provincial government says that the $ 60 million loan from Algoma Steel Inc. it ensured the pension regulatory relief and entitlement to the pension guarantee fund.

Rickford told reporters that the loan will provide retirees access to a safe and reliable pension that is moving forward.

"We are creating an opportunity and responsible use of taxpayers' dollars," said Rickford. "I think a more important narrative here is the three steps that significantly simplified the restructuring process and set the Algoma to a solid adjustment."

The province also negotiated an agreement that Algoma Steel Inc. requires that 3.8 million dollars be fired annually in the next 21 years in order to identify and remediate the past pollution of the environment.

"In order to facilitate restructuring, we are going to Algoma Steel with a process that, in our opinion, is just, reasonable and responsible for protecting the environment and a plan for the rehabilitation of old areas," said Rickford.

General Director of Algoma Steel Inc. Kalyan Ghosh told reporters that the modernization and expansion program will allow the steelmaker to produce new types of steel for the automotive industry and increase the capacity and capacity of steel panels.

– with files from Canadian Press


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