Steel Mills

KPS Withdraws from Consortium, Algoma to Proceed with Term Lenders
Written by Sandy Williams
July 14, 2016
SAULT STE. MARIE – Essar Steel Algoma Inc. (Algoma) has received notice from the Term Lenders that the Consortium Agreement between KPS Capital Partners LP and certain Term Lenders has been terminated. The Term Lenders have indicated that they remain committed to a going-concern outcome for Algoma and all of its stakeholders, and to closing the transaction contemplated by the Asset Purchase Agreement as soon as possible.
As a result of this development Algoma is seeking an adjournment of the motion for approval of the Asset Purchase Agreement.
Essar Steel Algoma CEO Kalyan Ghosh commented on the development, “While it is unfortunate that KPS has withdrawn from the consortium, I am pleased that the Term Lenders remain committed to closing the transaction. Algoma will seek to work with its stakeholders to achieve the optimal outcome for the future of Algoma, its employees, pensioners and the customers we serve.”
SMU Note: USW members recently negotiated a purchase bid with Ontario Steel, which is backed by Essar Global. The withdrawal of KPS is likely due to an inability to reach a contract agreement with the union. KPS was not willing to take on the pension liabilities and the union said it preferred to pursue a purchase by Essar Global.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Nippon Steel posts quarterly loss on cost to buy U.S. Steel
Nippon Steel earnings take hit from buy of U.S. Steel.

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.”