Mayor asks for meeting with Premier Wynne

Sault Ste. Marie Mayor Christian Provenzano has written to Ontario Premier Kathleen Wynne, asking her to meet with him regarding the situation at Essar Steel Algoma.

"Unlike Hamilton, Sault Ste. Marie does not have a second major steel producer that can benefit from or employ its labour force," the mayor says in a letter sent to Premier Wynne last week.

"We are working to diversify our economy but the loss of our major employer before we have made more progress in that regard would be a tremendous setback."

Provenzano has also written to Sault MPP David Orazietti to ask for his assistance in setting up the Toronto meeting.

The following is the full text of Mayor Provenzano's letter to Wynne:

*************************
March 15, 2016

The Honourable Kathleen Wynne

Premier of Ontario

Room 281, Main Legislative Building, Queen's Park

Toronto, ON

M7A 1A1

Dear Premier Wynne,

I am writing with respect to the Companies' Creditor Arrangement Act proceeding before the Ontario Superior Court of Justice involving Essar Steel Algoma Inc. (Essar Steel).

I know that Minister Orazietti has been a strong advocate for both the steel industry in general and the integrated steel mill operation in our community and that you are well aware of the challenges that we currently face.

As the mayor of the community, I thought it was important that I voice my support for Minister Orazietti's efforts and reiterate the importance of the continued operation of the facility to our community - as it simply cannot be understated.

On February 10th, 2016, the Honourable Senior Justice Morawetz of the Ontario Superior Court of Justice endorsed an order regarding the sales and investment solicitation process (SISP Order).

The SISP Order outlines the time frame and process within which Essar Steel, the monitor, the financial advisor and the chief restructuring officer can solicit, negotiate and ultimately accept a qualified bid for the Essar Steel assets.

We are entering a vital stage of this process as the bid deadline is approaching.

Based on my own assessment of the matter and taking into consideration similar situations, I expect that the Province of Ontario will be called upon to play a very significant role in a successful bid.

Whatever the case, I need to emphasize that the City of Sault Ste. Marie needs the Province of Ontario to embrace this role and do whatever it can to ensure that the SISP process results in a transaction that ensures the continued operation of the steel mill in Sault Ste. Marie.

I want to stress that our community's situation is dissimilar in some important ways to the U.S. Steel process in Hamilton that has seen the Stelco assets placed under creditor protection since September, 2014.

Unlike Hamilton, Sault Ste. Marie does not have a second major steel producer that can benefit from or employ its labour force.

We are not located adjacent to a metropolitan area that can provide employment opportunities for displaced workers.

Given our current size, location and economic circumstances, Sault Ste. Marie simply cannot afford to lose its primary employer.

We are working to diversify our economy but the loss of our major employer before we have made more progress in that regard would be a tremendous setback.

Approximately 8,000 people are directly or indirectly employed through the operation of the steel mill.

Additionally, approximately 8,600 pensioners rely on it as a primary source of income.

It is the major economic driver in our community, one of the largest employers in the region and the second largest integrated steel producer in Canada.

I would be grateful to have the opportunity to discuss this matter with you further and I would be willing to travel to Queen's Park to do so at your convenience.

I have sent a letter to Minister Orazietti expressing the interest and requesting his assistance in facilitating a meeting.

I appreciate your consideration and hope to have the opportunity to discuss this matter with you further.

Sincerely,

Christian Provenzano, Mayor

c.c. The Honourable David Orazietti, MPP, Sault Ste. Marie; Corporation of the City of Sault Ste. Marie City Council