Algoma Steel Comments on Ontario’s Recently Announced Northern Energy Advantage Program
08 Avril 2022 - 5:30PM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or the
“Company”), a leading Canadian producer of hot and cold rolled
steel sheet and plate products, today commented on Ontario’s newly
announced Northern Ontario Energy Advantage Program (“NEAP”), an
important program for Algoma as it pursues its transition to
electric arc furnace (“EAF”) steelmaking.
“The Province’s commitment to supporting
industrial electricity customers through the Northern Industrial
Electricity Rebate Program was key in our decision to pursue
electric arc steelmaking. We believe the ongoing support from
the Government of Ontario through the enhanced NEAP program will
play an important role in enabling us to modernize steelmaking and
create a secure, stable future in Sault Ste. Marie,” said Michael
McQuade, President and CEO of Algoma. “Importantly, the NEAP is
expected to provide a reliable energy framework to allow industrial
electricity consumers across Northern Ontario to consider long-term
investment decisions in technologies and expansion initiatives that
can further regional economic activity and advance climate change
goals. We recognize and thank the province for their support and
leadership on the path to net zero.”
With Algoma’s previously announced transition to
EAF steelmaking, today’s NEAP announcement represents a further
landmark reinforcing the relevance of its investment decision.
Ontario’s clean energy grid is known as one of the lowest carbon
emitting power supplies across North America. When combined with
Algoma’s strategic decision to transition to EAF, the Company
intends to become one of the leading producers of green steel in
North America.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively, “forward
looking statements”), including statements regarding Algoma’s
planned investment in and transition to EAF steelmaking, including
its plan to modernize steelmaking and create a secure, stable
future in Sault Ste. Marie, and its intention to become one of the
leading producers of green steel in North America. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,”
“should,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions. Forward-looking statements are
predictions, projections and other statements about
future events that are based on current expectations and
assumptions. Many factors could cause actual future events to
differ materially from the forward-looking statements in this
document, including but not limited to: the risk that the benefits
of the recently completed merger may not be realized; the risks
that Algoma will be delayed or unable to realize its business plans
and strategic objectives, including its investment in, and
transition to, EAF steelmaking; the risks that higher cost of
internally generated power and market pricing for electricity
sourced from Algoma’s current grid in Northern Ontario could have
an adverse impact on our production and financial performance; the
risks associated with the steel industry generally; and changes in
general economic conditions, including as a result of the COVID-19
pandemic. The foregoing list of factors is not exhaustive and
readers should also consider the other risks and uncertainties set
forth in the section entitled “Risk Factors” and “Cautionary Note
Regarding Forward-Looking Statements” in the prospectus filed by
Algoma with the Ontario Securities Commission (the “OSC”)
(available under the company’s SEDAR profile at www.sedar.com) and
in the registration statement on Form F-1 filed by Algoma with the
Securities and Exchange Commission (the “SEC”) (available at
www.sec.gov), as well as in Algoma’s current reports with the OSC
and SEC. Forward-looking statements speak only as of the date they
are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Algoma assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise.
About Algoma Steel Group
Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. With a current
raw steel production capacity of an estimated 2.8 million tons per
year, Algoma’s size and diverse capabilities enable it to deliver
responsive, customer-driven product solutions straight from the
ladle to direct applications in the automotive, construction,
energy, defense, and manufacturing sectors. Algoma is a key
supplier of steel products to customers in Canada and Midwest USA
and is the only producer of plate steel products in Canada.
Algoma’s mill is one of the lowest cost producers
of hot rolled sheet steel (HRC) in North America owing in
part to its state-of-the-art Direct Strip Production Complex
(“DSPC”), which is the newest thin slab caster in North America
with direct coupling to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful
improvements over the last several years that are expected to
result in enhanced long-term profitability for the business. Algoma
has upgraded its DSPC facility and recently installed its No. 2
Ladle Metallurgy Furnace. Additionally, Algoma has cost
cutting initiatives underway and is in the process of
modernizing its plate mill facilities.
Today Algoma is on a transformation journey,
investing in its people and processes, optimizing and modernizing
to secure a sustainable future. Our customer focus, growing
capability and courage to meet the industry’s challenges head-on
position us firmly as your partner in steel.
For more information, please contact:
Brenda StentaManager Communications &
BrandingAlgoma Steel Group
Inc.Phone: +1.705.206.1022E-mail: brenda.stenta@algoma.com
Algoma Steel (TSX:ASTL)
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