Algoma Steel
A Canadian integrated steel producer based in Sault Ste. Marie, Ontario, specializing in flat steel products for industrial and construction markets.
Last updated August 27, 2026
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Overview
Algoma Steel is an integrated primary steel producer headquartered on the St. Marys River in Sault Ste. Marie, Ontario. Founded in 1901 by entrepreneur Francis Hector Clergue, the company became a central part of the city’s industrial economy and has remained one of its largest employers. Its historical production base combined ironmaking, steelmaking and rolling, with the business initially focused on railway rails before shifting toward a broader flat-steel portfolio. Algoma’s principal products include hot-rolled and cold-rolled sheet and coil, plate and welded structural beams. These materials serve automotive, construction, energy, manufacturing, pipe and tube, transportation and steel-distribution customers in Canada and the United States. The company sells through direct customer relationships and distribution channels, with products manufactured to industrial specifications involving dimensions, strength, surface quality and forming performance. The business has experienced repeated changes in ownership and financial structure. It was affected by the Great Depression, entered receivership in 1932, and later underwent bankruptcy-protection or creditor-protection proceedings in the 1990s, 2000s and 2015–2018. Ownership changed from Canadian Pacific Limited to Dofasco and later to Essar Group. During the Essar period, the operating name became Essar Steel Algoma before the Algoma name was restored for branding purposes in 2017. In 2021, Algoma agreed to combine with Legato Merger Corp., a Nasdaq-listed special-purpose acquisition company, returning the business to the public markets. The resulting Algoma Steel Group Inc. trades under ASTL on the Toronto Stock Exchange and Nasdaq. The company has also pursued a major modernization program centered on electric-arc-furnace steelmaking. The project is intended to replace part of the traditional blast-furnace and basic-oxygen-furnace system, improve production flexibility and reduce the carbon intensity of steel production. Algoma continues to operate its Sault Ste. Marie works as an important Canadian flat-steel manufacturing base.
History
Algoma Steel was incorporated in 1901 in Sault Ste. Marie, Ontario, as part of Francis Hector Clergue’s plan to develop an integrated industrial complex around local mineral resources. Construction of the steelworks began that year. A Bessemer converter began operating in February 1902 using pig iron from the Helen mine, and the works produced its first rails in May. Blast furnaces were completed in 1904. Because the region did not provide sufficient coal and coke, Algoma depended heavily on imported fuel from the United States. Rail production dominated the company’s early decades. The business benefited from railway construction and wartime demand, including the manufacture of steel for artillery shells during the First World War. However, the company faced structural disadvantages: railway expansion eventually slowed, imported raw materials increased costs, and owners were criticized for prioritizing distributions over long-term investment. Clergue lost control after the company’s early financial difficulties, and the works was temporarily shut down during the 1903 crisis. The Great Depression placed Algoma in receivership in 1932. Sir James Dunn, who had held a minority interest since 1908, gained control in 1935 and restored the company to profitability. Under Dunn, retained earnings were directed toward modernization and expansion rather than dividends. Wartime investment and strong postwar demand helped the company become a more balanced steel producer, expanding beyond rails into a wider range of rolled products. Ownership and financial conditions changed repeatedly in the second half of the twentieth century. Canadian Pacific Limited became the controlling shareholder, and Algoma was publicly traded on the Toronto Stock Exchange during the 1980s. Dofasco acquired the company from Canadian Pacific in 1988, but the investment was written down as Algoma entered a prolonged restructuring period. A strike, currency pressures, competition from mini-mills and lower-cost overseas producers, and allegations of imported steel dumping all contributed to financial stress. Algoma entered bankruptcy proceedings in 1990 and emerged from protection in 1992. It underwent another restructuring and emerged from bankruptcy protection in 2002, with chief executive Denis Turcotte widely associated with the subsequent operating recovery. In 2005 and 2006, the company reported improved profitability and reduced debt, although the availability of cash also prompted debate among shareholders about distributions. Essar Global offered to acquire Algoma in 2007 and completed the purchase that year. In 2008, the operating company adopted the name Essar Steel Algoma. It later invested in a cogeneration facility using by-product gases from coke and ironmaking operations, producing electricity and steam for the site. The company entered creditor protection again in 2015 and remained subject to insolvency-related restructuring until 2018. The Algoma name was restored for branding in 2017, although the legal entity continued to carry the Essar name for a period. In 2021, Algoma agreed to merge with Legato Merger Corp., a special-purpose acquisition company, and Algoma Steel Group Inc. returned to public markets. The company’s subsequent strategy has emphasized an electric-arc-furnace project, intended to replace part of its conventional blast-furnace-based route and reduce emissions while maintaining the Sault Ste. Marie production base.
- 2021
Return to public markets
[2]Algoma combined with Legato Merger Corp. and Algoma Steel Group Inc. began trading publicly.
- 2017
Algoma brand restored
[1]The business was rebranded from Essar Steel Algoma to Algoma for public-facing purposes.
- 2015
Creditor protection
[1]The company entered another creditor-protection process, which continued through 2018.
- 2009
Cogeneration facility starts operation
[1]A cogeneration facility using by-product gases from the steelmaking process began operating at the site.
- 2007
Essar acquisition
[1]Essar Global completed its acquisition of Algoma Steel Inc.
- 2002
Emergence from restructuring
[1]The company emerged from its second bankruptcy-protection process in roughly a decade.
- 1990
Bankruptcy protection
[1]Algoma entered bankruptcy proceedings during a period of financial and industrial pressure.
- 1988
Dofasco acquisition
[1]Dofasco acquired Algoma from Canadian Pacific Limited.
- 1935
James Dunn gains control
[1]Sir James Dunn took control and began a period of modernization and operational recovery.
- 1932
Receivership during the Great Depression
[1]Algoma entered receivership amid the economic collapse of the Great Depression.
Products and positioning
A Canadian integrated steel producer serving industrial, infrastructure and manufacturing customers with flat steel products and lower-carbon production modernization.
flat steel products
Steel plate
Heavy-gauge flat steel supplied for construction, heavy equipment, energy infrastructure, transportation and other demanding industrial applications. Plate is produced to customer requirements for thickness, strength, toughness, weldability and other performance characteristics.
flat steel products
Steel sheet
Sheet steel for manufacturing, construction and general industrial processing. Products may be specified according to gauge, grade, surface condition, dimensional tolerances and forming requirements.
flat steel products
Hot-rolled coil
Hot-rolled coil produced for industrial fabrication, construction, transportation and downstream processing. It is a core flat-steel form used where customers need a combination of structural performance, availability and processability.
flat steel products
Cold-rolled coil
Cold-rolled coil intended for applications requiring improved surface quality, dimensional control or forming characteristics compared with standard hot-rolled material. It serves manufacturing and other industrial customers.
structural steel
Welded structural beams
Welded structural sections manufactured for construction and industrial structures. These products extend Algoma’s offering beyond sheet, coil and plate into fabricated structural applications.
Controversies
2023
Air-quality regulatory exemptions
Algoma’s Sault Ste. Marie facility was reported to operate under site-specific Ontario air-quality standards that permitted exceedances for certain pollutants, including benzene, benzo(a)pyrene and particulate matter. The issue generated criticism concerning industrial emissions and public-health protections.
Brand decisions
2021
Combine with Legato Merger Corp.M&ABackground
Algoma sought to return to public ownership and announced a transaction with New York-based acquisition company Legato Merger Corp.
Action taken
Algoma entered a business combination with the Nasdaq-listed special-purpose acquisition company.
Aftermath
Algoma Steel Group Inc. became publicly traded under ASTL on the Toronto Stock Exchange and Nasdaq.
2021
Develop electric-arc-furnace steelmakingStrategyBackground
Algoma’s traditional production route relied on blast furnaces and basic oxygen furnaces, while customers and regulators increasingly emphasized emissions reduction.
Action taken
The company advanced construction of an electric-arc-furnace complex to modernize steelmaking and reduce carbon intensity.
Aftermath
The project became the company’s central production-modernization and decarbonization initiative.
2009
Commission by-product-gas cogeneration facilityStrategyBackground
The steelworks generated blast-furnace and coke-oven gases that could be used as fuel for on-site energy generation.
Action taken
Algoma commissioned an approximately 85 MW cogeneration facility producing electricity and steam from steelmaking by-products.
Aftermath
The facility supplied energy to the integrated works and represented an effort to improve use of process by-products.
2007
Accept Essar Global acquisitionM&ABackground
Algoma was operating in a competitive and financially challenging North American steel market and received an acquisition offer from Essar Global.
Action taken
The company accepted Essar Global’s cash offer, with the acquisition completed in June 2007.
Aftermath
Algoma became part of Essar Group and later adopted the name Essar Steel Algoma Inc.
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