The largest employer in the northern Ontario city of Sault Ste. Marie is getting half a billion dollars in government loans to maintain its workforce in the face of U.S. tariffs.
Federal Jobs Minister Patty Hadju made the announcement at the steel mill on Monday morning.
The federal government has entered into a “term sheet” through its “large enterprise tariff loan” to provide Algoma Steel with a $400-million loan, and the Ontario government has agreed to provide $100 million under the same terms.
A release from Ottawa says the funding is to allow the plant to “continue operations, transition to a business model less reliant on the United States and limit disruption to its workforce.”
The loan is a part of a $10-billion financing facility announced in March for large companies to help them fight the tariffs and counter-measures. It complements a slew of other tariff-related measures announced by the federal government for the Canadian steel industry.
Founded in 1901, Algoma Steel says it’s now one of North American’s leading manufacturers of hot- and cold-rolled steel sheet and plate products. It employs about 2,600 people in the city, which has a population of around 72,000.
In July, the company said it had applied for a $500-million loan from Ottawa as it faces 50 per cent tariffs on Canadian steel exports to the United States.
In a news release at the time, the company said it’s “concerned with the significant impact” the tariffs are having on its operations and outlook.
“We are taking a measured and disciplined approach to evaluating the implications of sustained trade barriers,” said Algoma Steel CEO Michael Garcia.
“We continue to call for timely, prudent policy support to ensure Canadian steelmakers can remain viable contributors to the national interest. A strong Canadian steel industry is essential to Canada’s economic strength, environmental goals, and national security. With the right frameworks in place, we are confident Algoma will emerge from this period as a vital part of Canada’s nation-building agenda.”
