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Algoma Steel investment in electric arc steelmaking proves company healthy again: Romano

No provincial commitment has been made toward the project, but Romano told SooToday announcements are coming.
20211112 Ross Romano Algoma Steel KA
Sault MPP and minister of Government and Consumer Services Ross Romano is joined by Ontario Energy Minister Todd Smith at a press conference held Friday at Algoma Steel Inc.

The provincial government is trumpeting the recent announcement by Algoma Steel's board of directors to officially go ahead with a $700-million investment in electric arc steelmaking and Sault Ste. Marie’s MPP says that decision could lead to a return of economic prosperity for Northern Ontario.

On Thursday, Algoma Steel announced its board had approved a plan to replace the existing blast furnace with two new state-of-the-art electric-arc-furnaces (EAFs) at an expected cost of $700 million.

On Friday, four provincial cabinet ministers held a press conference at Algoma Energy, the former Lake Superior Power Plant.

Sault Ste. Marie MPP Ross Romano recounted the ‘good times’ at the steel plant before its first bankruptcy and restructuring. His father, grandfather and two uncles were among the 12,000 people working at the plant in those days.

“If you lived in or around Sault Ste. Marie at that time you either worked at Algoma Steel, you were related to somebody who worked at Algoma Steel, at a minimum you knew someone who worked at Algoma Steel. Back then things were very good for Algoma Steel and very good for Sault Ste. Marie, too,” said Romano.

By the time he turned 12 fortunes had turned for the company.

“By the time I started my first year of high school in 1993, Algoma Steel was going through its first bankruptcy restructuring proceedings,” said Romano. “That would be the first of three such proceedings in as many decades. Things in Sault Ste. Marie and all of Northern Ontario had taken a serious decline.”

Romano said the announcement that the company will move ahead with the $700 million investment is good news for the city and for Northern Ontario.

“This demonstrates that Algoma Steel, which has been our largest employer for several generations and supported thousands of workers and their families throughout this time, can continue to be here for several generations more,” said Romano. “This demonstrates that Algoma is healthy again, this demonstrates that our economy can become healthy again and as our economy in Sault Ste. Marie and across all of Northern Ontario becomes healthy again, so to can our communities have a chance at becoming healthy again.”

He said other contributions by the provincial government, like securing the pensions of almost 9,000 steelworkers and a $60 million investment in 2019, led to the conditions that made this newest project possible.

Michael McQuade , CEO of Algoma Steel, said the $700 investment in electric arc  steelmaking will be transformational for the company.

“To be in a position to unlock electric arc steelmaking means we will be able to sustain advanced manufacturing in our community, offering a bright future with high-quality jobs for generations to come,” said McQuade.

The company has already begun working with local academic institutions to train current and future generations of steelworkers, like the recently announced Bachelor of Engineering – Mechatronics degree program at Sault College in partnership with Humber College.

McQuade said future generations will look back at the $700-million investment in electric arc technology as a pivotal moment for the company.

“This is a massive win. It’s a win for Algoma Steel, a win for our employees and for our community, for Ontario and for Canada,” said McQuade.

Ontario’s Minister of Energy Todd Smith joined Romano in person at the press conference on Friday, while ministers Greg Rickford and Vic Fedeli appeared by video conference.

In July, the federal government announced a $420 million investment in the project. No provincial commitment has yet been made toward the project, but Romano told SooToday more announcements are coming.

Smith told SooToday the provincial government was waiting until the company made a final decision on the project to make sure it was going ahead.

“The federal government made their $420 million investment earlier this year, but there hadn’t been a decision made by the company to go ahead with this project,” said Smith. “There were a number of different things that were brought to our cabinet table at Queens Park that we had to deal with just to make sure there was the certainty here and in Ontario to make this kind of investment.”

Smith said the plant’s conversion to electric arc technology will reduce CO2 emissions by 3 million tons, having an equivalent effect to taking one million cars off the road.

“It’s enormous. When you think of the heavy lifting Algoma is going to be doing as a result of this investment in the arc furnace when it comes to greenhouse gas emissions for the province — one move like that gets us 16 per cent closer to achieving the targets we set out for Ontario in the Paris Accord for 2030 to meet those targets,” he said.


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Kenneth Armstrong

About the Author: Kenneth Armstrong

Kenneth Armstrong is a news reporter and photojournalist who regularly covers municipal government, business and politics and photographs events, sports and features.
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