Algoma Steel Group Launches First Electric Arc Furnace Amid Financial Challenges
Algoma Steel Group Inc. has launched its first electric arc furnace (EAF), advancing its strategic transformation despite facing U.S. Section 232 tariffs that limit market access and depress pricing. The company reported a fourth-quarter net loss of $365 million and an annual loss of $985 million. The EAF is now operating continuously, producing high-quality steel, and is expected to enhance operational efficiency and reduce carbon emissions by 70% post-transition.
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Algoma Steel Group Inc. has launched its first electric arc furnace (EAF) as part of its strategic transformation amid challenges from U.S. Section 232 tariffs that have negatively affected market access and pricing.
The company reported a fourth-quarter net loss of $365 million and an annual loss of $985 million. The EAF is now operating 24/7, producing high-quality steel that meets specifications for plate and hot-rolled coil grades.
Following the EAF transition, Algoma's annual raw steel production capacity is expected to reach 3.7 million tons, with a projected 70% reduction in carbon emissions. The company is also winding down its blast furnace and coke oven operations ahead of the planned 2027 timeline.
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