Algoma Steel seeks government funding

Sault Ste. Marie, Ontario-based Algoma Steel Group Inc. has applied to the Canadian federal Large Enterprise Tariff Loan (LETL) program for a $500 million loan to bolster its liquidity in a curtailed cross-border trade landscape.

In a late July news release titled “Comments on [the] ongoing trade impasse and prolonged tariff environment,” Algoma notes it is nearing completion of its $650 million investment in recycled-content electric arc furnace (EAF) steelmaking.

In the announcement, the company acknowledges the ongoing efforts of Canadian government negotiators to secure a "fair and durable trade resolution" with the United States, but adds it is concerned with the significant impact the current 50 percent Section 232 tariff on Canadian steel is having on its operations and outlook.

“Algoma has sufficient resources on hand to manage its liquidity over the near term," the company adds. "However, given the ongoing uncertainty caused by the U.S. tariffs resulting in a structural imbalance in the Canadian market, the company is considering various alternatives to bolster liquidity.”

The company's LETL loan application taps into a government program designed to align with long-term domestic demand in sectors such as defense and construction while reinforcing Canada’s industrial resilience and low-carbon transformation.

“We are taking a measured and disciplined approach to evaluating the implications of sustained trade barriers," Algoma Steel CEO Michael Garcia says. "We continue to call for timely, prudent policy support to ensure Canadian steelmakers can remain viable contributors to the national interest.

“A strong Canadian steel industry is essential to Canada’s economic strength, environmental goals and national security. With the right frameworks in place, we are confident Algoma will emerge from this period as a vital part of Canada’s nation-building agenda.”