Essar Steel closes two local divisions

Essar Steel Algoma advised its employees this morning that operations at two of its local facilities will be suspended at year's end.

"Due to prolonged decline in market demand, the commercial team is no longer accepting customer orders for products manufactured by QBI or the welded shapes and profiles division," the company advised in an internal memo.

"Existing customer contract commitments will be honoured and operations at these two facilities will be suspended by calendar year-end. Going forward, steel that was traditionally earmarked for these facilities will be redirected into products and markets that offer a greater return to the business on a sustainable basis."

Essar advised employees at the two affected facilities that they will be redeployed to "alternate roles throughout the steelworks."

"As we make this product shift and operating needs become clear, human resources will co-ordinate the reassignment of personnel."