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Algoma Steel Receives CAD$500 Million in Support from Canada, Ontario Governments
09/29/2025 - Algoma Steel Group Inc. has secured CAD$500 million in loans from the Canadian and Ontario governments to maintain its workforce amid trade uncertainty and advance its ongoing business transformation.
According to a press release, the loans have a seven-year term, with interest at CORRA + 200 bps for three years, stepping up by 200 bps each year thereafter. They are comprised of CAD$400 million from the Canadian government under the Large Enterprise Tariff Loan facility and the remaining CAD$100 million is from the province of Ontario.
“The ongoing imposition of a 50% tariff on Canadian steel has closed the U.S. market to Canadian steelmakers. We require this liquidity support to withstand this unprecedented U.S. governmental action, and importantly, to continue our transformation for the future,” said Michael Garcia, chief executive officer of Algoma.
The company said the U.S. Section 232 tariffs have made continued operation of its blast furnace and coke ovens unsustainable. Therefore, it will accelerate its transition to electric arc furnace (EAF) steelmaking. It expects the total cost of the project will be about CAD$987 million.
“By combining essential liquidity with targeted support for our transition to EAF steelmaking, this support allows us to move forward with confidence — aligning operations with market realities, advancing the EAF strategy, and safeguarding Algoma’s future,” said Rajat Marwah, chief financial officer of Algoma.
The company said it expects the adjustments to enable it to supply Canadian industries with high-quality as-rolled and heat-treated plate; provide stability for continued investment in projects; and reinforce Algoma’s role in supporting Canada’s infrastructure, manufacturing, defense and nation-building priorities.
“The ongoing imposition of a 50% tariff on Canadian steel has closed the U.S. market to Canadian steelmakers. We require this liquidity support to withstand this unprecedented U.S. governmental action, and importantly, to continue our transformation for the future,” said Michael Garcia, chief executive officer of Algoma.
The company said the U.S. Section 232 tariffs have made continued operation of its blast furnace and coke ovens unsustainable. Therefore, it will accelerate its transition to electric arc furnace (EAF) steelmaking. It expects the total cost of the project will be about CAD$987 million.
“By combining essential liquidity with targeted support for our transition to EAF steelmaking, this support allows us to move forward with confidence — aligning operations with market realities, advancing the EAF strategy, and safeguarding Algoma’s future,” said Rajat Marwah, chief financial officer of Algoma.
The company said it expects the adjustments to enable it to supply Canadian industries with high-quality as-rolled and heat-treated plate; provide stability for continued investment in projects; and reinforce Algoma’s role in supporting Canada’s infrastructure, manufacturing, defense and nation-building priorities.
