Algoma Steel provides government support to resist U.

S. tariffs and accelerate transition to EDP

The Canadian steel company Algoma Steel Group Inc. announced that it has received a major financial boost of 500 million Canadian dollars in the form of liquidity support from the Canadian federal government and the government of the province of Ontario. This funding aims to provide Algoma with the flexibility it needs to withstand U.

S. trade measures and accelerate decarbonization and modernization plans.

The package includes 400 million Canadian dollars in loan funds from the federal government under the Tariff Credit Facility for Large Enterprises and 100 million Canadian dollars from the Government of Ontario.

CEO Michael Garcia stated that the 50% tariff imposed by the US has effectively closed the US market to Canadian steel, which requires strong financial support. "We need this liquidity support to withstand this unprecedented action by the U.

S. government and, importantly, continue our transformation going forward," Garcia said, adding that Algoma remains a critical pillar of Canada's economic strategy.

Operational adjustments in response to market conditions

Combined with the announcement of financing, Algoma is adjusting production to reflect reduced export opportunities caused by Section 232 tariffs and changing domestic demand patterns.

The company will begin phasing out blast furnaces and coke ovens, which are no longer viable in the current market conditions. Instead, it will accelerate its C$987 million EAF transition project. These adjustments are expected to enable Algoma