Algoma Steel Retrofit

Algoma Steel Inc. is a privately owned steel manufacturer located in Sault Ste. Marie, Ontario. The company maintains raw steel production capacity of approximately 4 million tonnes per year from two blast furnaces. Algoma manufactures steel sheets and serves automotive, construction, infrastructure, energy and defence customers throughout North America.

Algoma’s blast furnace production equipment is approaching the end of its life and requires capital investments. Algoma is electrifying its steelmaking process by installing electric arc furnaces (EAFs) to improve product mix and reduce production costs and reduces the environmental footprint associated environmental compliance cost. This process is expected to reduce Algoma’s greenhouse gas emissions (GHG) by more than 70 per cent, the equivalent of taking more than 900,000 passenger vehicles off the road.

Benefits of CIB involvement

The Algoma Steel project has one of the highest potential GHG reduction benefits in CIB's portfolio. The project investment supports economic development in the Sault Ste. Marie region and helps sustain the regional steelmaking economy. Our investment will also allow Algoma to compete with other producers across North America.

*The CIB concluded an investment agreement with Algoma which provided $220M in committed financing to the Algoma Steel retrofit project. The terms of the investment agreement provided that in the case of improved market conditions, Algoma would reduce the amount to be drawn on the CIB commitment. As a result of improved conditions, Algoma has been able to self-finance the project without drawing on CIB funds. The investment agreement was critical to supporting the launch of the project, which is now under construction and is expected to reduce Algoma’s GHG emissions associated with the facility by 70 per cent.