Algoma Steel adjusts production to better align with demand

Alongside securing this financing, Algoma is adjusting production to better align with prevailing demand and market dynamics. The continuation of Section 232 tariffs has effectively closed the U.S. market to Canadian steel, undermining Algoma’s cross-border business model and requiring the Company to focus on products with reliable domestic demand. The tariffs have made continued operation of the Company’s blast furnace and coke ovens unsustainable. Accordingly, Algoma will begin to exit these primary operations as it accelerates its transition to Electric Arc Furnace steelmaking. The Company now expects that the final aggregate cost of completion of the EAF project will be approximately C$987 million. Going forward, Algoma intends to focus production on as-rolled and heat-treated plate, along with select coil products predominantly for the Canadian market. These adjustments are expected to enable Algoma to: supply Canadian industries with high-quality as-rolled and heat-treated plate; provide stability for continued investment in diversification projects aligned with Canada’s evolving needs; and reinforce Algoma’s role in supporting Canada’s infrastructure, manufacturing, defense, and nation-building priorities.