Algoma expressed support for the Canadian government's efforts to achieve a sustainable and fair trade solution with the United States, noting that high tariffs, particularly on Canadian steel, pose a threat to the future of the industry.
As part of the transition to environmental sustainability, the company emphasized that it has invested over CAD 900 million in electric arc furnace technology, which is expected to significantly reduce its carbon footprint. This transformation will create value for all stakeholders and contribute positively to the company's long-term cash flow if tariffs are lifted.
However, Algoma noted that the US tariffs have created a structural imbalance in the Canadian domestic market, which creates uncertainty, and announced that they are working on various financial alternatives to strengthen liquidity in the short term. The additional financing to be requested will depend on the duration of the trade dispute and the impact of imported products on the market, the company stated.
Algoma also announced that it has applied for the CAD 500 million Large Enterprise Tariff Loan (LETL) program as part of its constructive dialogue with the Canadian government. With this support, the company is also evaluating long-term capital investments for domestic demand in strategic sectors such as defense and construction.
Algoma Steel CEO Michael Garcia stated, "We are carefully considering the impact of unsustainable trade barriers. Timely and rational policy support is essential for the Canadian steel industry to continue to contribute to the national interest. With the right policy frameworks, we believe Algoma can play a central role in Canada's industrial transformation."
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