Canada
December 11, 2025
Canadian government could help Algoma build two new heavy structural mills: Reports
Written by Laura Miller
Plans are in the works to save 500 steelworker jobs at Algoma Steel and to construct two new mills – a plate mill and a beam mill, according to various local media reports.
Canadian Industry Minister Mélanie Joly met with the steelmaker and local unions in Sault Ste. Marie, Ontario, on Dec. 5. Although there was no official agreement, Joly disclosed their discussions to reporters after the meeting.
Joly proposed the federal government provide financial support to Algoma Steel. The steelmaker has been hit hard by the 50% Section 232 tariffs imposed by the US.
With the government backing, Algoma would build a new plate mill and a new structural beams mill. This would allow the steelmaker to bid on defense contracts and open itself to housing and infrastructure projects, according to a CBC report.
Structural steel and long-product production would be a new forte for Algoma Steel, which has typically been strictly a flat-rolled steel producer.
As of press time, Algoma had not responded to a request for comment.
Algoma and the two United Steelworkers Locals representing workers at the Algoma mill assured Joly that 500 jobs could be saved under the plan, the report said. That would bring back less than half the >1,000 job cuts announced just this month. Those layoffs are slated for late March.
The CBC report said a detailed business plan about Algoma’s “proposed move into steel plate and structural beams production will be made public in January.”
The USW had previously encouraged the steel producer to diversify into products like structural steel and rail to help meet domestic demand as the country pivots to “Buy Canadian” policies in the wake of the Trump administration’s tariff regime.
In a seemingly related move in October, Algoma announced a partnership with a structural steel fabricator and a hyperloop transportation company in Canada. Algoma agreed to supply 1.5 million to 2.0 million metric tons of steel, and Supreme Steel would manufacture the guideways for the TransPod Line infrastructure project. The project is pending final approval.
