Algoma Steel Inc. announced he has completed the purchase of Essar Steel Algoma Inc. assets, and has become fully featured in CCAA security.
The new ownership says that she is committed to investing $ 300 million in steelwork to expand her ability and to be able to have a degree to meet the demand for higher grades of steel.
SooToday will update this story as information is released this afternoon. Also, watch for a full story on the implications of today's announcement.
The full statement by Algoma Steel Inc. following:
Algoma Steel Inc. Creates a stronger, more sustainable company, Canada Canada – and we employ.
Algoma Steel Inc. announced today he has completed the purchase of all assets Essar Steel Algoma Inc. significantly. The business has become clear free of defense of the Companies Creditors Arrangements Act (CCAA) as a stronger and more sustainable company steel Canada.
Since 1901, Algoma Steel has been a reputable supplier of Canadian quality steel. Today, new ownership and directorship of a board of professional directors, Algoma Steel has a significantly better balance sheet, offering financial stability, safe pensions, and employment for over 2900 workers in Sault Ste. Marie. The Company has re-established itself in the market, with a promise to bring positive economic and social impacts locally, regionally and nationally.
"When we look around the domestic and international steel markets, what we see is where there is a lot to grow Algoma Steel," said Kalyan Ghosh, CEO of Algoma Steel. "We have a long and proud story in Canada, producing 100 per cent of our products here in Sault Ste. Marie. Today, Algoma Steel is an independent and strong specialist player, producing a comprehensive mix of hot and cold steel sheet and plate products not only for Canadian markets, but also beyond. "
As Algoma Steel has come to the forefront he has resurrected plans for modernizing its facilities in Sault Ste. Marie. The new owners are committed to the $ 300 million CDN investment in steelwork to expand capacity and ability, making Algoma Steel more efficient and competitive worldwide. This investment will install Algoma Steel to meet the increasing demand for higher levels of steel and to support growth in associated industries such as shipbuilding, car manufacturing, energy, mining and defense.
The Company also returns to financial stability with a strong, healthy balance sheet and significantly smaller debt. With the support and approval of the provincial government, three Algoma Steel's benefit pension schemes are safe and sustainable. United States Workers Steel United 2251 and 2724 have also played a great part in working towards a constructive solution, helping to ensure the continued viability of Algoma Steel for generations of steel workers in the future.
"Today we employ. We are coming out of this restructuring for growth, thanks very much to the decision and professionalism shown by our employees in the face of uncertainty," said Mr. Ghosh. "We are always grateful for the patience of our suppliers and the confidence expressed by our customers through this process. We have also enjoyed incredible support from federal, provincial and urban governments as Algoma Steel works. It's hard to return to be a cornerstone maker not only in Sault Ste. Marie, but also in Ontario and Canada. "