Algoma Steel

Reflecting the challenging environment for Canadian steel makers, Algoma and its predecessor companies have been financially restructured at least four times.

[2] On February 18, 1902, the first Bessemer converter was put in operation using pig iron made from the Helen mine, owned by Algoma.

The Bessemer process was felt to produce steel that was well-suited to manufacture of rails, which was the Algoma complex's primary product for the first two decades of its existence.

At the height of the Great Depression, the company was insolvent and in receivership until financier Sir James Dunn, who had had a minority role in the mill's ownwrship since 1908, gained control in 1935 and restored it to profitability.

Algoma Steel was publicly traded on the Toronto Stock Exchange in the 1980s when Dofasco bought the company from then controlling shareholder Canadian Pacific Limited.

A strike at Algoma both reduced cash flows and increased costs, contributing to the financial stress of the company.

Denis Turcotte, the President and CEO, was largely credited with Algoma's resurgence, making it one of the most efficient steelmakers in North America.

As a result of this and redemption of their 11% notes on January 9, 2006 the company declared themselves debt free and had an operating surplus of over $400 million in cash.

On 15 April 2007, India's Essar Global made an offer to acquire Algoma Steel Inc. for $1.85 billion CAD in cash.

For legal purposes, the factory will remain "Essar Steel Algoma Inc." until the company emerges from insolvency protection.

[citation needed] In October 2006, Algoma Steel was awarded a power purchase agreement by the Ontario Power Authority to build, own and operate a co-generation power plant utilizing by-product fuels such as blast furnace gas (BFG) and coke oven gas (COG); Algoma Steel has founded a limited partnership company called Algoma Energy LP to own and operate the co-generation facility.

Essar has set a precedent as the first integrated steel manufacturer in Canada to construct a co-generation facility fueled with by-product gas from the operation.

Algoma's products are used in the automotive, construction, energy, manufacturing, pipe and tube, and steel distribution industries.