Steel Mills

Essar Steel Algoma to Begin Sale Process
Written by Sandy Williams
January 19, 2016
Essar Steel Algoma will begin the process of looking for a buyer or investor next month according to letters sent to suppliers by CEO Kalyan Ghosh.
Under terms of the Debtor In Possession (DIP) Agreement, the company must get court approval for a “broad and investment solicitation process (SISP)” by February 1, 2016.
“While we are hopeful that 2016 will bring improved market conditions and new opportunities, Essar Steel Algoma is contending with a tight deadline for its financial restructuring,” said Ghosh. “A significant number of variables will have to align to attract a new investor, but the process calls for a deal to be completed and approved by August 31.”
In the sixth report by Court-appointed monitor Brian Denega stated in his sixth report last week, “An expedited timeframe is imperative as there is substantial risk that the Applicants may exhaust their available liquidity under the DIP Facilities before the DIP Agreement expires on August 31, 2016 (subject to possible extension until September 30, 2016). This risk will be exacerbated if the North American steel market conditions continue to deteriorate.”
As part of the SISP, Essar Steel Algoma is developing a five year business plan that potential buyers will use to evaluate Algoma’s operations. A key issue in that plan will be ensuring that an adequate iron ore supply arrangement can be found.
“Seeking court protection is not a decision we took lightly,” CEO Ghosh said in his letter to suppliers. “However, in the face of sharply lower steel prices and weakening global demand, it remains our best chance to ensure that Essar Steel Algoma has the financial resilience to operate now and going forward.”
Sale of Essar Steel Algoma will coincide with the sale of US Steel Canada which is also currently under CCAA protection.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Atlas completes Evraz NA deal, renames firm, and hires former USS exec as CEO
Atlas Holdings has completed its acquisition of Evraz North America (Evraz NA) and its subsidiaries.

ArcelorMittal: As tariffs slow global growth, Calvert could be a bright spot
ArcelorMittal expects less demand growth across most of the markets it operates in, including the US, because of President Donald Trump’s tariffs. But the Luxembourg-based steelmaker also thinks it stands to benefit from an increasingly regionalized world thanks to investments like the new EAF at its mill in Calvert, Ala.

Ternium posts solid Q2, expects further shipment growth
Latin American steel producer Ternium delivered a solid performance in the second quarter of 2025. Performance was driven primarily by higher realized steel prices in Mexico, even as shipment volumes declined slightly across its regional portfolio.

Algoma swings to loss on ‘unprecedented disruptions’ and trade barriers
Canada’s Algoma Steel saw a sharp loss in the second quarter amid a continued challenging market environment and “tariff uncertainties.”

Nucor eyes long-term gains amid strong demand and trade enforcement
Resilient demand across its steel product lines, combined with the continued ramp-up of key expansion projects, drove Nucor’s improved financial results and record-setting performance in the second quarter. That’s according to company executives speaking on an earnings conference call on Tuesday.