Algoma Steel Awards Building Contract to Walters Group
25 Abril 2022 - 08:30AM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma”), a
leading Canadian producer of hot and cold rolled steel sheet and
plate products, today announced that it has awarded the structural
building contract for its electric arc steelmaking facility (“EAF”)
to Hamilton, ON-based Walters Group Inc. (“Walters”). Walters will
be responsible for fabricating and erecting the main building
structure in addition to the necessary dust collection hoods.
Pursuant to the fixed-priced contract, Walters
will use Algoma’s steel plate products in the fabrication of the
heavy structural components, and will work with local industrial
contractor, SIS Manufacturing Inc., for the fabrication of these
key elements. Onsite assembly of the building structure is expected
to commence in the fall of 2022, with completion targeted within a
year.
“Today’s announcement marks another significant
milestone in our path to become Canada’s top producer of green
steel,” said Michael McQuade, Algoma’s Chief Executive Officer.
“Walters has a strong reputation for safe project execution and
extensive experience in major industrial projects. When selecting a
contractor, it was imperative that we identify those who were
willing to work with local contractors, like SIS Group. Walters’
appreciation of our commitment to the Sault Ste. Marie community
and partner-oriented model make it an ideal contractor to support
Algoma’s transformative EAF project.”
“We are both delighted and honoured to be
selected by Algoma to build their new EAF facility in Sault Ste.
Marie,” said Peter Kranendonk, CEO of Walters. “We have been
designing, fabricating and constructing steel for commercial and
industrial projects throughout North America for more than 65
years. As an Ontario-based company, we welcome the opportunity to
work with another Canadian icon on a project that is expected to
drive a marked carbon reduction in the province we both call
home.”
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively, “forward
looking statements”), including statements regarding Algoma’s
planned investment in EAF steelmaking, reduction in carbon
emissions, the use of Algoma’s steel plate products in the
construction of the EAF facility and Algoma’s position as a top
producer in green steel. These forward-looking statements generally
are identified by the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “pipeline,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and
similar expressions. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions. Many factors could cause
actual future events to differ materially from the forward-looking
statements in this document, including but not limited to: the risk
that the benefits of the recently completed merger may not be
realized; the risks that Algoma will be delayed or unable to
realize its business plans and strategic objectives, including its
investment in EAF steelmaking and the corresponding reduction in
carbon emissions; the risks that higher cost of internally
generated power and market pricing for electricity sourced from
Algoma’s current grid in Northern Ontario could have an adverse
impact on our production and financial performance; the risks
associated with the steel industry generally; and changes in
general economic conditions, including as a result of
the COVID-19 pandemic. The foregoing list of factors is
not exhaustive and readers should also consider the other risks and
uncertainties set forth in the section entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” in the
prospectus filed by Algoma with the Ontario Securities Commission
(the “OSC”) (available under the company’s SEDAR profile at
www.sedar.com) and in the registration statement on
Form F-1 filed by Algoma with the Securities and Exchange
Commission (the “SEC”) (available at www.sec.gov), as well as in
the other documents Algoma has filed with the OSC and the SEC.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Algoma assumes no obligation and does not intend to
update or revise these forward-looking statements, whether as a
result of new information, future events, or
otherwise.About Algoma Steel
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. With a current raw steel
production capacity of an estimated 2.8 million tons per year,
Algoma’s size and diverse capabilities enable it to deliver
responsive, customer-driven product solutions straight from the
ladle to direct applications in the automotive, construction,
energy, defense, and manufacturing sectors. Algoma is a key
supplier of steel products to customers in Canada and Midwest USA
and is the only producer of plate steel products in Canada.
Algoma’s mill is one of the lowest-cost producers of hot rolled
sheet steel (HRC) in North America owing in part to its
state-of-the-art Direct Strip Production Complex (“DSPC”), which is
the newest thin slab caster in North America with direct coupling
to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful
improvements over the last several years that are expected to
result in enhanced long-term profitability for the business. Algoma
has upgraded its DSPC facility and recently installed its No. 2
Ladle Metallurgy Furnace. Additionally, Algoma has cost-cutting
initiatives underway and is in the process of modernizing its plate
mill facilities.
Today Algoma is on a transformation journey,
investing in its people and processes, optimizing and modernizing
to secure a sustainable future. Our customer focus, growing
capability and courage to meet the industry’s challenges head-on
position us firmly as your partner in steel.
For more information, please contact:
Brenda StentaManager Communications & BrandingAlgoma Steel
Inc.Phone: +1.705.206.1022E-mail:
brenda.stenta@algoma.com
About Walters Group
As a well-respected, family-owned steel
construction company, general contractors have trusted Walters
Group as their partner on commercial and industrial projects
throughout North America for over 65 years.
With a passionate team, we bring together our
experience and the capacity to deliver on projects of all sizes and
levels of complexity. Through our healthy obsession with planning
and innovative use of the latest technology, our clients feel
confident that they can rely on us to always find a way to get the
job done.
Delivering projects on time and on budget is
only part of the equation. Our goal for every project is for our
client, and all trades and partners, to enjoy the experience of
working with Walters.
Laura ValvasoriDirector of Marketing Walters Group Inc. Phone:
+1.416-712.9731E-mail: LauraV@waltersinc.com
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