LATEST STORIES:

Another Canadian steel maker in creditor protection

Share this story...

 

The slumping price of steel is now hitting another Ontario steel producer once seen as a potential buyer for U.S. Steel’s Canadian mills in Hamilton and Nanticoke.

Essar Steel Algoma has filed for creditor protection as it deals with steel prices that have fallen by more than half since February.

The company has filed requests with Canadian and U.S. courts as it seeks to restructure its debt and buy enough raw materials to last through the winter.

Essar Steel Algoma, a subsidiary of India-based global conglomerate Essar Steel, is the second biggest steel producer in Canada, churning out 2.5 million tonnes of steel products per year for automakers and other manufacturers.

The company’s mill in Sault Ste. Marie employs close to 3000 people, making it the city’s largest employer.