Algoma Steel
Company type | Steel |
---|---|
Founded | 1902 |
Founder | Francis Clergue |
Headquarters | Sault Ste. Marie, Ontario, Canada |
Number of employees | 3500 (2008) |
Website | www.algoma.com |
Algoma Steel Inc. (formerly Algoma Steel; Essar Steel Algoma) is an integrated
In May 2021, it was announced that Algoma "was to become a public company again" as it had agreed a merger with New York–based acquisition firm Legato Merger Corp, which is a
History
Construction of the steelworks started in February, 1901. On February 18, 1902, the first
Shortly after founding Algoma, Clergue's various financial operations suffered reverses, having to shutter operations in 1903, causing the 1903 Consolidated Lake Superior riot. After restructuring, he lost control of the Sault Ste. Marie complex, being replaced as general manager in 1903 and by 1908 was no longer on the company's board of directors. Initially the company specialized in manufacture of rails for Canadian railways, but this soon became a dead-end as railway construction passed its peak.
During the
From 1988 to 1991 Algoma was owned by Dofasco, making the combined company the largest steel producer in Canada. However, a strike at Algoma and other Dofasco subsidiaries in 1990 caused Dofasco to abandon ownership.
The high value of the Canadian dollar coupled with competition from
Algoma Steel announced on August 3, 2005, that the company was no longer for sale after a $64.7 million second quarter profit. The company stated that they are going to focus on value-enhancing, non-sale alternatives. Algoma also announced a special dividend of $6.00 per share payable on August 31, 2005, to shareholders of record on August 17, 2005, and a normal course issuer bid for up to 3.3 million shares.
On February 8, 2006, Algoma Steel announced a $55 million profit for their fourth quarter ending December 31, 2005. As a result of this and redemption of their 11% notes on January 9, 2006 the company declared themselves debt free and had an operating surplus of over $400 million in cash. This cash surplus attracted the attention of some shareholders who wanted to see the cash distributed as dividends, echoing Algoma's historic problems almost exactly a century earlier.
In October 2006, Algoma Steel was awarded a
On 15 April 2007,
On June 23, 2008, following its purchase by Essar Group, Algoma Steel Inc. announced that its name had been changed to Essar Steel Algoma Inc. This came along with a logo change to the Essar Steel company logo.
On May 26, 2017, Essar Steel Algoma was rebranded once again, simply called Algoma. The announcement was made in Sault Ste. Marie, Ontario. For legal purposes, the factory will remain "Essar Steel Algoma Inc." until the company emerges from insolvency protection.[5]
In May 2021 Algoma had a yearly production capacity of 2.8 million tonnes of steel, for which it employed around 2,700 people.[1]
Steel making facilities
Algoma currently[
Current status
Algoma currently is the second largest steel producer in Canada. It is the largest employer in Sault Ste. Marie and currently has 2800 employees at the main plant. Algoma now produces hot and cold rolled steel (i.e. sheet and plate).
Algoma's products are used in the automotive, construction, energy, manufacturing, pipe and tube, and steel distribution industries.[6]
On June 15, 2009, Essar Steel Algoma successfully started up a new, 85 MW cogeneration facility, to produce electricity and steam from the by-products of the coke making and iron making processes.[7]
It features two 375,000 lb/hr boilers and a 105MW turbine combined with other related components such as a generator, a blast furnace gas holder, condensate and feed-water systems, a water treatment plant, a cooling tower, a transformer, and a distributed control system. Essar has set a precedent as the first integrated steel manufacturer in Canada to construct a co-generation facility fueled with by-product gas from the operation.[7]
References
- ^ a b Evans, Pete (24 May 2021). "Canadian company Algoma Steel to go public again in takeover worth more than $1B US". CBC.
- ^ Joe Castaldo. "Top CEO 2006: Denis Turcotte, Algoma Steel Inc. | Innovation | Canadian Business Online". Canadianbusiness.com. Archived from the original on 2012-07-29. Retrieved 2010-12-01.
- ^ "Big conglomerate buys Algoma Steel". Sootoday.com. 2007-02-14. Retrieved 2010-12-01.
- ^ "Concerning Algoma Steel". Sootoday.com. 2007-06-20. Retrieved 2010-12-01.
- ^ Helwig, David (26 May 2017). "Why the steel mill changed its name". SooToday.com. Retrieved 26 May 2017.
- ^ [1] Archived October 17, 2009, at the Wayback Machine
- ^ a b "Item Not Found". Sootoday.com. Archived from the original on 2011-09-27. Retrieved 2010-12-01.
Further reading
- McDowall, Duncan (1984). Steel at the Sault: Francis H. Clergue, Sir James Dunn and the Algoma Steel Corporation, 1901–1956. Toronto: University of Toronto Press. JSTOR 10.3138/j.ctt2tv1r4.
External links
- Algoma production facilities
- Algoma SIAG press release
- New name for Algoma Steel, SooToday.com, 23 June 2008.