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Stock impact report

Algoma Steel CEO: Feds knew about plans for layoffs before giving $400M loan [BNN Bloomberg (Canada)]

Algoma Steel Group Inc. (ASTL) 
Company Research Source: BNN Bloomberg
Canada's last remaining independent steel producer, which employs about 2,700 people in the northern Ontario town, issued layoff notices to about 1,000 workers on Monday, effective in March. The company was hit hard by 50 per cent steel tariffs imposed by U.S. President Donald Trump in June. The layoffs come less than a month after the company said it had completed $500 million in financing agreements with the federal government and Government of Ontario, which had provided loans of $400 million and $100 million respectively. In an interview on CTV's Power Play , CEO Michael Garcia said it has been a “very challenging and sobering week” for Algoma Steel, and that the entire company has known for “a few months” what its strategy would be if the tariffs were not removed. Since 2021, the steel producer has been transitioning to Electric Arc Furnace (EAF) steelmaking, which Garcia describes as more cost-effective, more flexible, and less labour intensive. It also means a shutdown Show less Read more
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