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OTTAWA \u2014 Ontario-based Algoma Steel Group Inc. will receive $500 million in federal and provincial loan assistance to help reorient its business to cope with the impact of U.S. tariffs.<\/p>\n
Ottawa\u2019s $400 million in financial assistance will come from the Large Enterprise Tariff Loan program. The Ontario government will also provide $100 million to the Sault Ste. Marie, Ont.-based company.<\/p>\n
The federal government said in a statement the impact of U.S. tariffs on the steel sector is \u201cprofound.\u201d<\/p>\n
Ottawa introduced the $10-billion financing program in March to support companies affected by tariffs.<\/p>\n
The loans are to help Algoma Steel continue operations, limit disruption to its workforce and move to a business model that isn\u2019t as reliant on the U.S.<\/p>\n
Algoma CEO Michael Garcia said in a release that U.S. President Donald Trump\u2019s ongoing 50 per cent steel tariffs have effectively closed the American market to Canadian steel.<\/p>\n
That has made some of Algoma\u2019s existing operations unsustainable and pushed up timelines for the company to transition to electric arc furnace steelmaking \u2014 typically a more energy efficient process than traditional blast furnaces. Algoma expects this transition to cost $987 million by completion.<\/p>\n
That turnaround is also expected to help Algoma produce more of the kind of steel Canadian industry needs.<\/p>\n
Ottawa has pushed to include more domestic steel in Canadian infrastructure and defence projects in a bid to support the beleaguered sector.<\/p>\n
Industry Minister M\u00e9lanie Joly said in a statement that the Algoma loan was about \u201cbuilding resilience\u201d in Canada\u2019s steel industry for decades to come.<\/p>\n
The federal government said Algoma currently employs some 2,500 full-time workers.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n