Q2 Looking Good for Essar Steel Algoma

Essar Steel Algoma recently received approval from the Ontario Superior Court of Justice for a comprehensive recapitalization and refinancing plan. This quarter’s turnaround is attributed to significantly improved productivity and conversion costs, lower raw material costs and more manageable pension payments.

The company also cites healthy demand from the construction, automotive and energy sectors for its high strength sheet and heat treated plate. Essar Steel Algoma notes it has a full order book through November.

We have rebounded from the extreme weather conditions that marred our production last winter,” said CEO Kalyan Ghosh. “We have engaged our banking partners to manage the implementation of our refinancing plan which provides for a comprehensive capital infusion and a substantial deleveraging of our balance sheet, positioning us for further optimization and growth. We will share more details with the market as soon as the transaction structure is finalized. As we begin our seasonal raw material build we are encouraged by our strengthening run rate and higher value-added product mix that we have targeted for the second half of the year. These actions will translate into higher profitability and our employees are to be commended for their continued focused execution.”