Of the $341 million that Algoma Steel has spent so far on its high-tech transition to electric arc steelmaking, more than 15 per cent has gone to local businesses.
As of June 30, the Sault steelmaker has spent $52.2 million locally on the massive project.
That money has gone to 47 local suppliers, according to information released by the company to SooToday.
An estimated 500 local construction workers are employed on the project, which is expected to ultimately cost between $828 million and $878 million, making it the most expensive building project in Sault Ste. Marie's history.
Only $600 million of the necessary contracts have been issued to date.
One local company involved in a big way is SIS Manufacturing, which has been tasked with fabricating structural beams and girders.
Algoma’s building contractor is the Walters Group from Hamilton.
Italy-based Danieli & C. Officine Meccaniche S.p.A. is retained as sole technology provider for the electric arc furnaces.
GE Gas Power, a General Electric company, has been awarded a contract to upgrade Algoma's natural gas combined cycle power plant, including installation of two gas turbine packages.
Electric arc steelmaking produces steel by melting scrap metal and other metallic materials using an electric arc.
Algoma Steel is counting on two new electric arc furnaces to:
- improve its product mix
- reduce fixed costs
- provide for significant carbon tax savings
- increase production capacity
- decrease the company's environmental footprint