NEWS RELEASE
ALGOMA STEEL INC.
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As a result of COVID-19 market impacts, Algoma Steel Inc. (Algoma Steel) announced today the Company will be adjusting production to match current demand and to curtail costs. A market recovery is not anticipated in the near-term, and market conditions remain unstable. Therefore Algoma Steel is taking appropriate measures to ensure the Company continues to have the financial resilience and resources required, while maintaining reliable supply and product quality for Algoma’s customers.
Effective immediately, Algoma Steel will commence temporary layoff proceedings impacting approximately 70 full time hourly and salaried personnel from across the operation. A further 80-90 employees will displace full and part-time contract personnel.
Chief Executive Officer Michael McQuade advised, “We have taken this difficult decision to prudently sustain our financial strength during this ongoing period of broad economic and market instability, as economies continue to be affected by COVID-19 and related measures. As a steel producer, we are an essential service and we do not take that responsibility lightly. We continue to serve the needs of our customers by delivering quality steel products. Our first priority is to operate safely, ensuring the wellbeing of everyone in our workplace. We recognize the impact of this decision on our employees, their families, and the community. Algoma Steel will continue to monitor market conditions closely, and may make further adjustments as the business may require. We are taking a responsible approach today to ensure the sustainability of Algoma Steel tomorrow.”
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