Weather

Current Conditions
3.6C
Partly Cloudy
Today's Forecast
-5C
A few clouds
Sponsored by Highland Ford

News And Views

Classifieds

Announcements

Entertainment

Shop Local

More Local

Search The Web

Google Search

Local News

Essar Steel Algoma secures $25M loan agreement

Friday, December 06, 2013   by: SooToday.com Staff

NEWS RELEASE

ESSAR STEEL ALGOMA INC

*************************
SAULT STE. MARIE - Further to the May 6, 2013 amendment to its credit agreement, Essar Steel Algoma Inc. closed today on a $25 million USD secured loan with an institutional investor.

This agreement reinforces the Company's liquidity position heading into the customary seasonal raw material inventory build.

Essar Steel Algoma Chief Executive Officer Kalyan Ghosh commented on the development: "We continue to make strides in securing the reliability and sustainability of the business. When combined with our competitive cost position, improving industry fundamentals, lower raw material costs and pending amendment to our pension funding model, this agreement further reinforces our progress and demonstrates investor confidence in our long term prospects."

Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario. 

Revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet and plate.

*************************

Comments
38
Please sign in to post a response
Note: Comments that appear on the site are not the opinion of SooToday.com. Keep discussions civil and on topic. Refrain from obscenity and don't post anything that your grandmother would be ashamed to read. Those who do not abide by these guidelines will have their membership revoked without notice. If you see an abusive post, please click the link beside the post to report it.
jojo12345 12/6/2013 7:28:05 PM Report

if they are doing so good why they need a loan
timberridge 12/6/2013 7:43:02 PM Report

History repeating itself. Dofasco did this Algoma did this. Be careful. They want to make Essar into a steel company with third world compancations.
flyhawk25 12/6/2013 7:43:42 PM Report

Because they can write the interest off against costs.That's why genius.
Mike58 12/6/2013 7:58:21 PM Report

Bla Bla Bla Bla, same old story... If Essar Steel had been serious, they would have used the money they were given when they bought the place to build a new blast furnace! Instead they keep throwing bandaids on it, until it falls in. Then they will claim their bankrupt, and all the loans will disappear. It's pretty sad when all the new blast furnaces are in places like China and India. There's not a good blast furnace in all of North America!
itsme29 12/6/2013 8:07:20 PM Report

sad part is 25 million wouldn't even pay all the money they OWE the local contractors and rental/supply houses
Pete B 12/6/2013 8:27:35 PM Report

They could maybe make a bit of a profit if they would stop all the lazy ass employees from being lazy and allow the ones that want to work hard to do so, that place is such a big waste of money its not funny, So many times you hear its not my job, or sorry its dinner time, there are a few that are there to work and do a good job but there are more that are just there for the paycheque and the pension and could not give a hoot about anything but! it is very very frustrating as a contractor working with Essar employees trying to get your job done but cant cause you have to wait for some lazy ass to do his first, I could go on all night about this place but you get the jist.
ThinkAgain 12/6/2013 8:43:38 PM Report

Pete B 12/6/2013 8:27:35 PM

I agree with Pete's post, but nothing new just another reason why company's eventually fail - St. Mary's was just as bad & look what happened.

Mill Rights drunk on the job, sleeping on shift, it happens all the time.
[]D[][]\/[][]D 12/6/2013 9:46:20 PM Report

Hahahaha drunk on the job! Saying we are lazy! You probably work at a call center and have no idea what real work is and if you have any other job it wouldn't exist without Essar Steel! Sure some people in there have slack jobs sometimes but those jobs are there because when there is an emergency those people need to be there waiting! Judging by the spelling mistakes and improper grammar used on these comments, most of you people have no educational background to even know what's going on!
jroc1982 12/6/2013 10:10:17 PM Report

Its "millwright"... haha dumbass
alps 12/6/2013 10:20:21 PM Report

But they have the money for naming rights to the Essar Center, give all this money to the College and buy up all our apartment buildings (in which they make a profit from) and Mac's! How funny they dont have the money to fix anything and pay there contractors. Instead scare the employees and a town that needs them to thrive by reporting they need a loan. I agree they are trying to run things like they do in other countries where the pay scale is minimal. Its even funnier that they will pay someone overtime, rather than fix a $100 part! Makes no sense to me!
Pete B 12/6/2013 10:25:26 PM Report

[]D[][]\/[][]D


MY education has nothing to do with Essar Steel, I do however have a real job that I work hard at without a union to protect the lazy ones, in my industry you work hard you earn money, you slack off you earn less, and if your numbers are not up to snuff you get your ass fired cause there are hard working guys waiting at the door (so to speak), ready to work tomorrow ! I do know what hard work is as I have done it my hole life, 80% of the jobs in essar are not "hard" jobs, but when an employee makes a truck driver wait another 30 mins after an already long 8 hr wait cause its "supper time" when the load could have been put on the truck in 2 mins, then that's a lazy ass piece of crap employee. I know many Truckers that have had many many horrible experiences in the plate mill, DSPC, Wide stripe and cold mill due to these lazy asses,
[]D[][]\/[][]D 12/6/2013 11:01:30 PM Report

Then tell them to deliver somewhere else! There's a lineup of people waiting to drive that truck! If there's a problem don't show up at dinner time and expect immediate service! Not that hard to figure out!
[]D[][]\/[][]D 12/6/2013 11:04:50 PM Report

The only ones making stupid comments on here are the ones that are jealous because they can't get in!
zr800 12/7/2013 9:45:50 AM Report

if they did NOT steal the cogent power plant from us that makes millions of $$$ per week we would be fine and all the people they owe money to would be PAID
Forsaken502 12/7/2013 11:13:50 AM Report

Pete B:

I am an Essar employee and in maintenance. I have had to make contractors wait for a lockout so they could do their job. It wasn't because I was having supper or being lazy, it's because I have priorities that I have to follow. If a contractor needs a lockout, but I have some other piece of equipment down that is a higher priority, I have no choice. Also, you have no idea how many times I've seen contractors (mainly S&T) spend all shift on 1 job that should have taken about 2 hours. They drag it out for an 8 hour shift so they don't have to go do anything else. One example is a roll that needed to be installed. It was literally 4 bolts to put in. It took them all 8 hours to do it and it wasn't even done right. We had to go back an fix it the next day. My main complaint with Essar is forcing us to use S&T. The consistently show up with no tools or equipment. We have to supply them with everything and they charge more than SIM and other contractors that bring their own tools, locks and white suits.

And about the crane operator that could have loaded a truck in 2 minutes but chose to have supper first. There is usually a line up of trucks and that crane operator has other things to worry about as well (unloading conveyors and buggy's, loading equipment, etc). If he took 2 minutes to load the truck (which it does take more than 2 min, more like 10 at the fastest), then he should load the next one, and what about the one after that. He'd never get his supper.

Until you've worked inside the steel plant you have no right or basis to call us lazy. You've never done our job, you've never even seen our job. There are lazy people that work there, just like there are lazy people that work everywhere. But for the most part the employees do what is required of them to the best they can.
mallet 12/7/2013 11:51:47 AM Report

Forsaken..

I have always wondered about why everyone complains about workers at the plant, when they don't work there themselves. I could talk about the number of times I have to wait in line at grocery stores, suppliy stores of one type or another, banks, especially doctors even with an appointment, so a trucker had to wait to get loaded, he probably had to wait at the bridge too. As for lock outs, well that's a system of safety and you cannot lock every thing out at the same time, someone might need another piece of machinery locked out and you have to leave and go do that, after all you look after your own people first and contractors second. Generally they only have contractors in because it is cheaper than having people available to do those jobs, management looks on maintenance people as a necessary evil, it is just that when something breaksdown they need people there NOW not after a few phone calls to find the cheapest contractor to come and do the job...
dandrew61 12/7/2013 2:49:10 PM Report

@Forsaken502 12/7/2013 11:13:50 AM

Well written. For those who don't work at Essar it's hard for them to take the blinders off and see the big picture. With any company the size of Essar there are always things going on that only the experienced are aware of and sometimes people will make uninformed comments. Their only concern is what's happening to them at that moment. They feel they are justified. As they say ignorance is bliss. Unfortunately todays technology allows for their ignorance to spread. The sole remorse for an Essar employee is we are the only ones who know the true story.
trainman006 12/7/2013 3:24:33 PM Report

first of all, all you whiners that complain that workers at Essar are lazy have no right to comment at all if you don't work there. I for one work the rail section at Essar and we are on time limits for switching all of Essar and we have to give reasons why we did not complete a job on the time block of that mill. Workers at Essar work hard and are responsible well educated people who for the most part care about their jobs and the time it takes to complete them. Time studies are done all the time to justify the people that are working there and if the study shows it could be done with less then those employees are reassigned to other departments that are short of people. What is the main problem with Essar right now is the dept load and thus the shortage of cash, and that affects all areas and manning.
Safety as always is first and a job will be delayed if safety concerns have not been met by Essar and men will stand around and do nothing until all safety concerns are taken care of, if not fines can be issued. So in closing there is always a reason. Merry Christmas
Lleoy 12/7/2013 4:14:28 PM Report

Essar Employees can keep there jobs, only 18% get to enjoy there pension because they are dead from the work environment, or so lazy they die from heart disease. Got to go to sleep now, managers are on dinner!
Lleoy 12/7/2013 4:14:53 PM Report

Essar Employees can keep there jobs, only 18% get to enjoy there pension because they are dead from the work environment, or so lazy they die from heart disease. Got to go to sleep now, managers are on dinner!
[]D[][]\/[][]D 12/7/2013 5:58:56 PM Report

Might die early but we will die knowing the proper use of the word "their"!
judoka 12/7/2013 6:47:12 PM Report

Well, until Essar realizes that they are not actually saving $$ with the contractor situation, life will go on as such.
itsme29 12/7/2013 8:14:26 PM Report

@ forsaken

well said..i only wish the general public was aware of what essar did to the local tradesmen by bringing in s@T to undercut the rates by using senior citizens who just need an excuse to get out of afternoon bingo and don't really want to work! so many young tradesmen have had to leave town for work as some 70+ year old has gone back to the workforce..not because they can do the job better but because they can do it cheaper! and without a pension....there already on pension!! most on old age pension!!
screw you essar!!!
sitka_archie 12/7/2013 8:28:53 PM Report

Well said "Itsme"! People that aren't involved in the contractor life don't even have a clue what's going on right now!
zr800 12/7/2013 8:33:17 PM Report

most of the men that work for the outside contractors in essar steel are lazy retired people that where on light duty for years but now they can do the work..no more sore back or leg or arms ect..ESSAR thinks there saving money the JOKE IS ON ESSAR
sitka_archie 12/7/2013 8:35:21 PM Report

Nothing worse than getting on the bus beside akknown retiree and have them moan and groan about how they have to work enough to get their EI hours so they can soak it another year, on top of their pension, on top of their frikkin wages they made while getting all that. And then there's an actual apprentice sitting down the rows, with 500 hours work in 6 months, just trying to get as many hours as he can towards his apprenticeship. As far as I'm concerned local contractors should refuse to hire them. Not like they're talented and competent enough to train someone anyhow.....
sitka_archie 12/7/2013 8:35:25 PM Report

Nothing worse than getting on the bus beside akknown retiree and have them moan and groan about how they have to work enough to get their EI hours so they can soak it another year, on top of their pension, on top of their frikkin wages they made while getting all that. And then there's an actual apprentice sitting down the rows, with 500 hours work in 6 months, just trying to get as many hours as he can towards his apprenticeship. As far as I'm concerned local contractors should refuse to hire them. Not like they're talented and competent enough to train someone anyhow.....
itsme29 12/7/2013 8:46:35 PM Report

S@T is the worst offender. there entire crew is made up of retired essar people. they made some sweet heart agreement with ESSAR to supply cheap labour... so there giving them the senior citizen discount! if I need a new furnace or anything else it wont be from S@T they will never get any of my business for anything
itsme29 12/7/2013 8:48:29 PM Report

@zr800 and yet some of those people working for the contractors are young tradespeople trying to make aliving for there family... but being pushed out by retirees who work for next to nothing!
zr800 12/7/2013 9:00:15 PM Report

most people at ESSAR don't know how much welding s@t is doing at the welded beam building . there are welding on dump boxes..scrapers .. I guess it is ok with our so called union.. they change there clothes there shower there and take up space there...
sitka_archie 12/7/2013 9:06:49 PM Report

And yet essar maintenance welcomes them I'mwith open arms. Lend them tools, show them the job, how to do it, repeat how to do it, fix their screw ups for them, etc. The USW maintenance members need to make a stand with their stewards and refuse to work around them or help them. But none of them have the balls. The USW will lose even more jobs to retirees/contractors as long as you keep helping them. Contractors are supposed to be used as manpower when needed temporarily. Not full time, using your tools, your lunch rooms, your lockers and your showers and taking someone elses job.
itsme29 12/7/2013 9:14:38 PM Report

@ sitka_archie

essar maintenance people have orders to give S@T anything they want!! most don't like it but have no choice! I don't understand why usw doesn't fight for there members. from what ive seen they havnt done shit against the S@t situation..where the local trade unions have been fighting them in the courts from the get go
sitka_archie 12/7/2013 9:19:05 PM Report

The maintenance guys need to say "Screw this". And go home. They're just bowing down and letting more of their jobs go because they're "not allowed". The problem is there's only 25% of men who would actually do it, the other 75% just talk about it and when the time comes they stand down and get back to work. And yes, the USW reps and delegates need to grow some balls and put their foot down.
Forsaken502 12/7/2013 11:44:01 PM Report

Again, I am a maintenance employee there. I personally (and I know I am in the minority here) not against using contractors for maintenance. Before they post for contractors they put out overtime postings plant wide. Anyone who is capable can apply for the OT. If they can't get enough people then they call in contractors.

IMO Essar as a company is kind of bent over a bench here. They need to stay competitive with all the other steel mills in North America and to some extent internationally. All other steel mills in NA have been contacting out for maintenance because it's cheaper. If they pay less for maintenance, then their cost per ton of steel goes down. If their cost per ton goes down, then they can sell it cheaper then us on the market and still make a profit and Essar will loose customers. If they loose customers then eventually they'll be closing their doors.

Does it suck that Essar has to cut good paying maintenance jobs? Your damn right it sucks. But at the end of the day, what's better for the community. To keep as many well paying jobs as you can and close your doors next year. Or cut costs to stay competitive and keep your doors open for 20 years?

Also, not all of the these jobs are lost, they are moved from Essar to outside contractors. I personally have no problem with contractors coming in for downdays and outages, as long as they do their job. Where I get pissed off is there are WAY better contractors out there then S&T, yet we're forced to use them. And these other contactors have just as many retirees from Essar as S&T.

Where S&T got into trouble is once they became Essar's prime contractor, they realized they needed a lot more people so they didn't have the luxury of picking and choosing who they hired. If the guy had experience and a heartbeat he's in.
Forsaken502 12/7/2013 11:50:21 PM Report

And @sitka_archie et al:

Are you f'ing kidding me? The USW needs to put their foot down and not allow this? What kind of f'ed up world do you live in? Have you ever even seen the inside of the Steel plant? Again, if the USW/employees put their collective foot down and blockade the contractors from entering the plant then:

#1 - We'll be reprimanded and risk loosing our jobs because the overtime postings we're available and there were not enough people to fill the openings plant wide. Therefore we don't have a leg to stand on.

and

#2 - The USW and all it's members will soon be out of a job since the plant will be soon be closing. I don't know about you, but that's kind of the last thing I want.
sitka_archie 12/8/2013 8:27:38 AM Report

I happen to BE a contractor putz....

We come in and work down days, construction, and do various other temporary gigs you guys don't have the manpower for. That's understandable. What's not acceptable is S&T retirees working full time on stuff that you guys should be able to do.

I'm not knocking contractors, I just think they're being used to slowly replace Essar guys. It happened down south in the Auto Plants, and steel mills, its happening in the tube mill (SIS's full time crane repair dept. That works with Tenaris Crane repair everyday) and it'll happen to you guys too.

So don't come whining when you guys lose your jobs!
sitka_archie 12/8/2013 10:39:29 AM Report

Re: "Have you ever seen the inside of the Steel Plant?"


Laffin'! I try to stay out of their, as there is more overtime, better jobs, and better wages to be had as a union contractor elsewhere....
jojo12345 12/8/2013 12:08:13 PM Report

they will shut down the place soon so why argue
Comments
38
Please sign in to post a response
Note: Comments that appear on the site are not the opinion of SooToday.com. Keep discussions civil and on topic. Refrain from obscenity and don't post anything that your grandmother would be ashamed to read. Those who do not abide by these guidelines will have their membership revoked without notice. If you see an abusive post, please click the link beside the post to report it.
Advertising | Membership | Terms of Service | Privacy Policy | About SooToday.com | Contact Us | Feedback

Copyright ©2014 SooToday.com - All rights reserved