Algoma steel to get a loan of $ 400m federally, Tariff hit the industry as $ 100 meters from Ontario

The largest employer in the North Ontario city Sault Ste. Mary is getting half a billion dollars in government loans to maintain her workforce in front of the American tariff.

Federal Job Minister Patty Hadju announced at the steel mill on Monday morning.

The federal government has entered a “term sheet” through its “large venture tariff loan” to provide algoma steel with a $ 400 million loan, and the Ontario government has agreed to provide $ 100 million under similar terms.

A release by Ottawa says that the funding plant is to “continue operations, to allow transition to a business model and limit its workforce disruption.”

The loan is a part of the $ 10 billion financing facility declared in March for large companies in March to help them fight tariffs and counter-types. It complements a group of other tariff-related measures announced by the federal government for the Canadian steel industry.

Algoma aims to keep the company, steel sector viable

Established in 1901, Algoma Steel states that it is now one of the leading manufacturers of North American, one of the major manufacturers of hot and cold-ralled steel sheets and plate products. It employs about 2,600 people in the city, which has a population of about 72,000.

In July, the company said it had applied for a $ 500 million loan from Ottawa as it faces 50 percent tariff on Canadian steel exports to the United States.

In a news release at the time, the company said that it is “concerned with a significant impact” tariffs are getting on its operation and approach.

Algoma Steel CEO Michael Garcia said, “We are taking a measured and disciplined approach to evaluate the implications of continuous trade obstacles.”

“We continue calling for timely, prudent policy assistance to ensure that Canadian steelmakers can make viable contributors in the national interest. A strong Canadian steel industry is essential for Canada’s economic strength, environmental goals and national security. With the right framework, we believe that algoma will raise as an important part of the nation-country of Canada”