The federal government was aware that Algoma Steel was restructuring and could lay off workers when it provided the company a $400 million loan a few weeks ago, according to CEO Michael Garcia.
Algoma, based in Sault Ste. Marie, Ont., provided a four-month layoff notice to 1,000 employees on Dec. 1.
The company said the 50 percent U.S. tariffs on steel have made blast-furnace steelmaking “no longer viable” and has expedited its transition to Electric Arc Furnace steelmaking. This steelmaking process requires only 1,600 employees compared to the 3,000 required for blast furnace and coke oven operations.
This was “always the future of the company,” Garcia told CTV News on Dec. 2. He said the transition was expected to take place in 2027, but came earlier due to the vital U.S. market effectively closing off….