Established in 1901, Algoma Steel Inc. is an integrated steel producer based in Sault Ste. Marie, Ontario, Canada, which was acquired by Essar Steel Holdings Ltd (a wholly owned subsidiary of Essar Global Ltd). This has since been renamed to Essar Steel Algoma Inc.

Capacity: Algoma’s current production capacity is 2.4 million tonnes per annum (MTPA). The capacity of the plant is increased to 4 MTPA within a year of its acquisiton.

Facilities: Algoma comes to Essar with integrated steelmaking operations and a flexible manufacturing process for sheet / plate mix. Some of the key equipment at the plant include a low-cost, technologically advanced Direct Strip Production Complex (DSPC), a slabcaster, a 106-inch strip mill (one of the widest in North America), a 166-inch plate mill, a cold mill and blanking facility that helps produce steel customised for client requirements, and a welded beam division.

Strengths: High-end, custom-made products, as well as proximity to the demand-driven North American market and Fortune 500 customers make the Algoma acquistion a significant element of Essar’s global expansion plans. What’s more, Algoma has a history of strong profitability, with average EBITDA margins of over 25 percent in the last three years.

In a message to employees, President & CEO of Algoma Steel, Denis Turcotte, has described the Essar acquisition as “an exciting opportunity for Algoma to secure its future on the global stage with a strategic buyer that is interested in growing our business.” He has also hailed the Ruia family as “entrepreneurs in the true meaning of the word”, emphasizing that Algoma is in capable hands following the merger.

Speaking about the Algoma deal, Shashi Ruia, Chairman of Essar Global, has said: “This acquisition fits in with our global steel vision of having world class low cost assets, with a global footprint. Algoma provides us with an excellent platform for the Canadian and North American markets.”

For further details, go to www.algoma.com