As U.S. tariffs take a toll, Algoma Steel has announced it expects fourth-quarter losses of between $95 million and $105 million.
The Sault Ste. Marie, Ont.-based producer of hot and cold rolled steel sheet and plate products announced recently that steel shipments for the quarter are expected to be in the range of 375,000 to 380,000 tons.
“Our fourth-quarter results were in line with expectations, reflecting the continued impact of steel tariffs and the previously announced wind-down of our blast furnace operations, which are expected to conclude in the coming days,” Rajat Marwah, chief executive officer of Algoma, said in a news release.
“We are encouraged by the ongoing ramp-up of the first unit of our Electric Arc Furnace (EAF) project, which is now operating six days per week, and we remain on schedule with the second unit.”
The EAF project will position the steelmaker to focus on meeting domestic demand, as 50 per cent tariffs on steel imports imposed by U.S. President Donald Trump affect U.S. sales.
“We continue to optimize our existing assets and advance discussions with potential partners to expand our finishing capabilities,” Marwah said.
“This strategy is deliberately aligned with Canada’s national interest — strengthening domestic steelmaking capacity, supporting critical infrastructure and defence supply chains, and reinforcing Canada’s long-term industrial competitiveness.”
In addition to speeding up the transition from blast furnace to EAF operations, U.S. tariffs prompted Algoma to issue 1,000 layoff notices in December, job cuts that take effect March 23.
In September, it was announced that the steelmaker would receive $500 million in federal and provincial loan assistance to help reorient its business to cope with the impact of U.S. tariffs.
The $400 million from the federal government will come from the Large Enterprise Tariff Loan program, with the province providing $100 million.
The company has said job cuts would have been much worse without the federal and provincial assistance. It also hopes to add hundreds of jobs longer-term as it receives domestic orders for steel as Canada rebuilds it defence capabilities.
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