Algoma Steel gets into R&D, but not here in the Sault

Algoma Steel Inc. is looking for new research and development partners, and the search is taking the Sault-based steelmaker as far afield as the European Eastern Bloc, South America and even Asia.

"Other steel companies, not much bigger than we are, have a staff of scientists and engineers of 100, 150, sometimes 200 or even 250," Algoma's Chief Executive Officer Denis Turcotte told reporters yesterday.

"We want to be successful, not just alive," Turcotte said. "If we want to talk about a successful Algoma 10, 15 or 20 years from now, it's becoming clear to me that we need to find a way to work with others that have invested huge amounts of time and money into developing [steel industry based] technology or knowledge."

Turcotte says it wouldn't be possible to lure a staff of metallurgists and process managers here, mainly because of Sault Ste. Marie's remote location.

"It's not something we can realistically expect to do," said Turcotte, who's shown second from left in our photo, together with Armando Plastino, vice-president of operations; Daniel Ardilla, vice-president of finance and Steve Boniferro, vice-president human resources.

So Algoma Steel is looking around the world for good, trusting relationships with folks in the know about how to make the best steel.

The company wants to expand its market with more products and it has many questions about markets for welded pipes.

"It's got to lead to economic benefits for both partners," Turcotte said. "We don't know exactly where it's going to lead but it's clear to me that we have to go down this path if we want Algoma to be a successful company."

Algoma Steel also sees strong involvement of the oil and gas sector in its medium- to long-term future.

About 14 months ago, the company started looking at what products those sectors will want and how ASI could make those high-quality products efficiently.

"Over the past nine months we have successfully developed and produced grades up to and including X-65, or 65,000 yield steel that is targeted at the oil and gas sector," said Turcotte. "We've taken that steel to people who roll it into pipe here in North America and they're very happy with it."

Turcotte said that Algoma is intent on producing the highest grades of steel to sell to companies that make pipes for the oil and gas (primarily transport) industry.

The company's also looking at making welded pipes itself as part of its secondary manufacturing initiative.

But Turcotte says we shouldn't look for that for a while.

"We're in the very early stages and it will be an extended period of time, similar to the co-gen plant," he said.

Algoma Steel took about two years to study the idea of a power generation plant using waste heat to generate electricity and steam, both components of the steel-making process.