Algoma Steel Comments on Ongoing Trade Impasse and Prolonged Tariff Environment

Core Viewpoint - Algoma Steel Group Inc. is facing significant challenges due to the ongoing 50% Section 232 tariff on Canadian steel, which is impacting its operations and outlook, while the company is actively seeking solutions to enhance liquidity and maintain competitiveness in the market [2][3][5]. Company Overview - Algoma Steel is a leading Canadian producer of hot and cold rolled steel sheet and plate products, and it is the only independent and publicly owned steelmaker in Canada [2][8]. - The company is nearing completion of a C$900 million investment in electric arc furnace steelmaking, aimed at reducing its carbon footprint and improving cash flow generation [2][9]. Trade and Tariff Impact - The current trade impasse and tariff environment are causing a structural imbalance in the Canadian steel market, prompting Algoma to consider various alternatives to bolster liquidity [3][4]. - Algoma is exploring targeted liquidity tools, including an application for $500 million under the federal Large Enterprise Tariff Loan (LETL) program, to support its operations and strategic diversification [4][5]. Strategic Initiatives - The company is modernizing its plate mill and adopting electric arc technology to lower carbon emissions and enhance its position as a leading producer of green steel in North America [9][10]. - Algoma emphasizes the importance of a strong Canadian steel industry for the country's economic strength, environmental goals, and national security [5].