Canada
November 18, 2025
Algoma finalizes $500M loan from Canadian government
Written by Kristen DiLandro
Algoma Steel plans to continue its transition to electric-arc furnace (EAF) steelmaking using the CA$500 million in loans from the Ontario provincial and Canadian federal governments.
“Completing this financing reinforces our strong partnership with both levels of government and supports our ability to navigate current market conditions as we complete our EAF transition,” said CEO Michael Garcia.
He added, “This support provides Algoma with long-term financial flexibility. We are grateful for the government’s confidence in Algoma’s future as a low-carbon steel producer.”
The Sault Ste. Marie, Ontario-based steel plate and sheet producer borrowed CA$400 million from Canada Enterprise Emergency Funding Corporation (CEEFC), a part of Canada Development Investment Corporation (CDEV). The province of Ontario lent Algoma the other CA$100 million. The steelmaker began seeking financial support in July and secured it in late September.
Rajat Marwah, Algoma’s president and chief financial officer, said the working capital enables the company to focus.
“Finalizing these facilities marks another key milestone in executing our financial strategy. In line with the previously announced terms, the new funding allows us to remain focused on operational efficiency, cash generation, and our plate-first commercial strategy,” said Marwah.
In late September, the steelmaker said continuing to operate its blast furnace and coke ovens was unsustainable, and so would accelerate its transition to EAF steelmaking and focus on as-rolled and heat-treated plate products.
The Canadian steelmaker remains upfront about operational challenges resulting from the US’s tariff policy. Algoma’s Q3’25 earnings report reflected weaker financial performance due to US trade protections on steel.
“The US steel market remains largely closed to us, and broader market conditions continue to present headwinds,” Garcia stated.
Following over a decade of leadership at Algoma, Garcia will retire at the end of 2025.
