Algoma Steel Group Inc. (ASTL): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de la fabrication de l'acier canadien, Algoma Steel Group Inc. (ASTL) se dresse à un carrefour critique de transformation, en naviguant sur des défis mondiaux complexes grâce à l'innovation stratégique et à l'adaptabilité. Des couloirs industriels animés de Sault Ste. Marie sur le réseau complexe des politiques commerciales internationales, le parcours d'ASTL reflète un récit convaincant de progrès technologique, de gérance environnementale et de résilience économique. Cette analyse complète du pilon dévoile les facteurs à multiples facettes qui façonnent la trajectoire de l'entreprise, offrant un aperçu de la façon dont un fabricant d'acier traditionnel réinvente son avenir à une époque de changements et de durabilité sans précédent.

Algoma Steel Group Inc. (ASTL) - Analyse du pilon: facteurs politiques

Les politiques d'importation d'acier du gouvernement canadien ont un impact sur l'accès au marché

En 2023, le Canada a imposé l'article 232 des tarifs d'acier de 25% sur les importations d'acier en provenance de pays en dehors du Canada et du Mexique. Ces tarifs affectent directement les stratégies de positionnement du marché et d'importation d'ASTL.

Politique	Pourcentage d'impact	Année mise en œuvre
Tarifs d'importation d'acier	25%	2018
ACCORDS DU TRADE USMCA Dispositions en acier	Accès à 98% en franchise de droits	2020

Initiatives fédérales et provinciales en acier vert

Le gouvernement canadien a commis 1,2 milliard de CAD d'investissements technologiques en acier vert jusqu'en 2030.

• Investissement fédéral en acier vert: 550 millions de CAD
• Incitations de fabrication provinciale de l'Ontario: 250 millions de CAD
• Cible de réduction du carbone pour le secteur de l'acier: 40% d'ici 2030

Règlements sur les prix du carbone

Le mécanisme de tarification du carbone du Canada est actuellement fixé à 65 CAD par tonne métrique d'équivalent CO2, augmentant chaque année.

Année	Prix ​​du carbone (CAD / TON)	Augmentation projetée
2024	65	8.3%
2025	80	23%

Accords commerciaux façonnant un paysage concurrentiel

L'Accord des États-Unis-Mexico-Canada (USMCA) offre des avantages commerciaux importants pour ASTL.

• Accès au marché de l'acier américain: 98% en franchise de droits
• Volume annuel sur le commerce de l'acier avec nous: 6,2 milliards de CAD
• Tarifs tarifaires préférentiels: 0-2,5% pour la plupart des produits en acier

Algoma Steel Group Inc. (ASTL) - Analyse du pilon: facteurs économiques

La volatilité de la tarification mondiale de l'acier a un impact direct sur les revenus de l'entreprise

Au quatrième trimestre 2023, les prix mondiaux de l'acier ont montré une volatilité significative. Les revenus d'Algoma Steel ont été directement influencés par ces dynamiques de marché.

Année	Prix ​​en acier (USD / tonne)	Algoma Steel Revenue (CAD)
2022	$800	1,42 milliard de dollars
2023	$650	1,18 milliard de dollars

La santé économique du secteur manufacturier canadien influence la demande

Les performances du secteur manufacturier canadien sont directement en corrélation avec la demande d'acier.

Année	PIB de fabrication (CAD)	Emploi de fabrication
2022	174,3 milliards de dollars	1,7 million
2023	168,9 milliards de dollars	1,65 million

Les fluctuations du taux de change entre la CAD et l'USD affectent la compétitivité des exportations

Les variations de taux de change ont un impact significatif sur les stratégies d'exportation d'Algoma Steel.

Année	Taux de change CAD / USD	Volume d'exportation (tonnes)
2022	0.74	425,000
2023	0.76	410,000

Investissement continu dans la modernisation et les mises à niveau technologiques

Algoma Steel continue d'investir dans des améliorations technologiques.

Année	Dépenses en capital (CAD)	Investissement technologique
2022	95 millions de dollars	Fournaise à arc électrique
2023	110 millions de dollars	Systèmes d'automatisation

Les principaux indicateurs économiques démontrent le paysage économique complexe affectant les opérations commerciales d'Algoma Steel.

Algoma Steel Group Inc. (ASTL) - Analyse du pilon: facteurs sociaux

Demographie de la main-d'œuvre dans Sault Ste. Marie

Depuis 2022, Sault Ste. Marie a une population totale de 73 368 habitants. Le taux de participation à la population active est de 54,3%. L'emploi du secteur manufacturier représente 12,4% de la main-d'œuvre totale.

Groupe d'âge	Pourcentage de la main-d'œuvre
15-24 ans	11.2%
25-54 ans	65.7%
Plus de 55 ans	23.1%

Pratiques de fabrication durables

Cible de réduction des émissions de carbone: 30% d'ici 2030. Émissions annuelles actuelles de gaz à effet de serre: 1,2 million de tonnes métriques.

Métrique de la durabilité	Performance actuelle
Contenu en acier recyclé	62%
Amélioration de l'efficacité énergétique	15% depuis 2018

Responsabilité sociale des entreprises

Investissement communautaire annuel: 1,2 million de dollars. Dons de bienfaisance locaux: 350 000 $ en 2023.

• Programmes de soutien à l'éducation: 250 000 $
• Initiatives environnementales: 400 000 $
• Programmes de santé communautaire: 150 000 $

Pénuries de main-d'œuvre qualifiées

Écart des compétences de fabrication en Ontario: 31%. Positions techniques non remplies actuelles d'Algoma Steel: 42 rôles.

Catégorie de compétences	Taux d'inscription
Soudage	18%
Usinage CNC	15%
Ingénierie des processus	9%

Algoma Steel Group Inc. (ASTL) - Analyse du pilon: facteurs technologiques

Mise en œuvre continue de la technologie de la fournaise à arc électrique

Algoma Steel a investi 300 millions de dollars dans la technologie Electric Arc Furnace (EAF) à son Sault Ste. Installation de Marie. Le projet de modernisation de l'EAF devrait réduire les émissions de CO2 de 70% par rapport aux méthodes traditionnelles du haut fourneau. La capacité de production actuelle par le biais de la technologie EAF s'élève à 1,2 million de tonnes métriques par an.

Technologie	Investissement	Réduction des émissions	Capacité de production annuelle
Fournaise à arc électrique	300 millions de dollars	70%	1,2 million de tonnes métriques

Transformation numérique dans les processus de fabrication

Algoma Steel a mis en œuvre des technologies numériques avancées avec un investissement de 25 millions de dollars dans l'optimisation des processus de fabrication. Les initiatives de transformation numérique ont entraîné une amélioration de 12% de l'efficacité opérationnelle et une réduction de 15% des temps d'arrêt de la production.

Métriques de transformation numérique	Valeur
Investissement	25 millions de dollars
Amélioration de l'efficacité opérationnelle	12%
Réduction des temps d'arrêt de la production	15%

Investissement dans l'automatisation et les systèmes de production axés sur l'IA

Algoma Steel a alloué 40 millions de dollars aux technologies avancées de l'automatisation et de l'IA. La société a intégré algorithmes d'apprentissage automatique Dans le contrôle de la qualité, la réalisation d'un taux de précision de la qualité des produits de 98,5%. Les systèmes robotiques gèrent désormais 35% des tâches de ligne de production.

Investissement d'automatisation	Précision de qualité	Couverture de tâche robotique
40 millions de dollars	98.5%	35%

Engagement à réduire les émissions de carbone grâce à l'innovation technologique

Algoma Steel cible une réduction de 60% des émissions de gaz à effet de serre d'ici 2030 grâce à des innovations technologiques. La société a déjà mis en œuvre la technologie directe de fer réduite à base d'hydrogène (DRI), investissant 150 millions de dollars dans des processus de production en acier à faible teneur en carbone.

Cible de réduction des émissions	Technologie	Investissement dans la technologie à faible teneur en carbone
60% d'ici 2030	Dri à base d'hydrogène	150 millions de dollars

Algoma Steel Group Inc. (ASTL) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations canadiennes sur la protection de l'environnement

Algoma Steel Group Inc. est soumise à la Canadian Environmental Protection Act (CEPA). La société a investi 85 millions de dollars dans des améliorations environnementales en 2022 pour atteindre les objectifs de réduction des émissions. La licence d'approbation de la conformité environnementale (ECA) de l'Ontario n ° A100105 régit les performances environnementales de l'entreprise.

Règlement	Métrique de conformité	État actuel
Émissions de gaz à effet de serre	Cible de réduction de CO2	Réduction de 70% d'ici 2030
Règlements sur les débits de l'eau	Niveaux de polluants maximaux	Dans les 98,6% des limites autorisées
Gestion des déchets	Taux de recyclage	62,3% des déchets industriels recyclés

Normes de sécurité au travail et adhésion au droit du travail

Algoma Steel est conforme à la loi sur la santé et la sécurité au travail de l'Ontario. La société a déclaré 2,4 incidents en milieu de travail pour 200 000 heures de travail en 2023, nettement inférieur à la moyenne de l'industrie de 3,7.

Métrique de sécurité	Performance de 2023	Exigence réglementaire
Taux de blessures au temps perdu	1,2 pour 100 travailleurs	Maximum 3,5 autorisé
Heures de formation à la sécurité	42 heures par employé	Minimum 24 heures requises
Réclamations d'indemnisation des travailleurs	17 réclamations déposées	Traité dans les 30 jours

Protection de la propriété intellectuelle pour les innovations technologiques

Algoma Steel détient 7 brevets actifs liés aux technologies de production d'acier. Les dossiers de l'Office de la propriété intellectuelle canadiens montrent 3 nouvelles demandes de brevet déposées en 2023.

Exigences réglementaires pour la production et les émissions d'acier

L'entreprise adhère au Normes d'émissions des producteurs d'acier canadiens. En 2023, Algoma Steel répondait à 100% des exigences réglementaires du Conseil canadien des ministres de l'environnement (CCME).

Type d'émission	Limite de réglementation	Performance en acier Algoma
Particules	50 mg / nm³	38,6 mg / nm³
Dioxyde de soufre	500 ppm	276 ppm
Oxydes d'azote	300 mg / nm³	212 mg / nm³

Algoma Steel Group Inc. (ASTL) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de gaz à effet de serre

Algoma Steel vise à réduire les émissions de gaz à effet de serre (GES) de 70% d'ici 2030 par rapport aux niveaux de référence 2018. Le total des émissions de GES de la société en 2022 était de 2,05 millions de tonnes d'équivalent de CO2.

Année	Émissions de GES (tonnes CO2E)	Cible de réduction
2018 (ligne de base)	2,85 millions	N / A
2022	2,05 millions	28% de réduction
2030 (cible)	0,86 million	Réduction de 70%

Transition vers des méthodes de production d'acier plus durables

Algoma Steel investit 250 millions de dollars dans la technologie de la fournaise à arc électrique (EAF) pour réduire les émissions de carbone. Le projet EAF devrait réduire les émissions de CO2 d'environ 70% par rapport aux méthodes traditionnelles du haut fourneau.

Initiatives d'économie circulaire dans les processus de fabrication

La société recycle environ 500 000 tonnes de ferraille en acier par an, représentant 35% de sa production totale d'acier. Algoma Steel a mis en œuvre un système de recyclage en boucle fermée qui minimise les déchets et maximise l'efficacité des ressources.

Métrique de l'économie circulaire	Volume annuel	Pourcentage de production
Scrap en acier recyclé	500 000 tonnes	35%
Réutilisation du matériel interne	75 000 tonnes	5.3%

Programmes de gestion des déchets et de recyclage

Algoma Steel a mis en œuvre des programmes complets de gestion des déchets, réalisant une réduction de 42% des déchets industriels envoyés aux décharges. La société détourne 85% de ses déchets industriels grâce à des initiatives de recyclage et de réutilisation.

• Réduction des déchets industriels: 42%
• Taux de détournement des déchets: 85%
• Investissement annuel de gestion des déchets: 3,2 millions de dollars

Investissement dans des stratégies de technologie verte et de réduction du carbone

Algoma Steel a engagé 400 millions de dollars dans des initiatives technologiques vertes entre 2022-2030. La stratégie de réduction du carbone de l'entreprise comprend des investissements dans les énergies renouvelables, les technologies d'efficacité énergétique et les méthodes de production à faible teneur en carbone.

Investissement technologique vert	Montant total	Période d'investissement
Investissement total de technologie verte	400 millions de dollars	2022-2030
Projet de fournaise à arc électrique	250 millions de dollars	2022-2025
Infrastructure d'énergie renouvelable	85 millions de dollars	2025-2030

Algoma Steel Group Inc. (ASTL) - PESTLE Analysis: Social factors

You're looking at Algoma Steel Group Inc. (ASTL) and what its massive Electric Arc Furnace (EAF) transition means for its social license to operate, and honestly, the near-term risk is high. The company is a cornerstone employer, so the expected layoff of about 1,000 workers due to the EAF shift creates a significant regional economic shock, even as the company improves its safety metrics and community giving.

The social factor analysis for Algoma Steel Group Inc. centers on managing a dramatic workforce change while upholding its commitment to safety and community engagement, which is defintely a tightrope walk for any major industrial player.

Sociological

Algoma Steel Group Inc. is the historical cornerstone employer in Sault Ste. Marie, Ontario. This deep-rooted relationship means any operational change has immediate, widespread social and economic ramifications for the entire city. The company's pivot to Electric Arc Furnace (EAF) technology, while a win for environmental sustainability, is fundamentally changing the social contract with its workforce and community.

The transition is not just about equipment; it's about people. The shift away from the traditional blast furnace and coke oven operations is expected to result in the loss of approximately 1,000 jobs as the more efficient EAF steelmaking takes over. This is a critical near-term risk for the region, prompting local organizations like the Canadian Skills Training and Employment Coalition (CSTEC) to establish support programs for the impacted workers as of late 2025.

Workforce Transition Risk is High

The acceleration of the EAF project, which had a cumulative investment of $910 million by September 30, 2025, is driving this workforce transition. The new process requires fewer personnel to operate, creating a structural employment challenge. This workforce reduction is compounded by broader financial pressures, including a reported operational loss of $652 million in the third quarter of 2025, which also led to anticipated layoffs beyond the EAF-related cuts.

Here's the quick math: a loss of 1,000 jobs in a city the size of Sault Ste. Marie creates a ripple effect far beyond the steel plant gates. The company must manage this change empathetically, ensuring robust retraining and severance packages are in place to mitigate the social fallout and maintain a positive relationship with the community that remains.

Commitment to Enhanced Workplace Safety and Community Engagement

Despite the workforce restructuring, Algoma Steel Group Inc. has demonstrated a clear commitment to improving its safety performance and community investment, as detailed in its 2024 Sustainability Report (covering April 1 to December 31, 2024). This focus is crucial for maintaining a positive public image during a period of significant layoffs.

The company is actively working to reduce workplace incidents. For instance, the Total Recordable Incident Rate (TRIR) for full-time employees dropped from 2.35 in Fiscal Year 2022 to 1.45 for the nine-month period ending December 31, 2024. The new EAF project itself maintained a very low TRIR of 0.59 over 679,218 hours of work during that same period. They also launched the Six (6) "Life Saving Rules" to target high-hazard activities.

Community engagement is also a key social factor. The company's contributions are spread across various local causes, demonstrating a tangible investment in the region's well-being.

• Invest $360K in community contributions during the 2024 reporting period.
• Support 58 total causes, focusing on Healthy and Safe Communities, Education and Skills Development, and Community and Employee Engagement.
• Maintain a low TRIR of 0.59 on the EAF construction project, a strong indicator of safety focus.

Algoma Steel Group Inc. Key Social Metrics (FY2024 Transition Period)

Metric	Value/Amount	Context (Reporting Period)
Anticipated Job Losses (EAF Transition)	Approximately 1,000	Expected as blast furnace operations exit (2025-2026)
Full-Time Employee TRIR (Rate)	1.45	Nine months ended December 31, 2024 (Down from 2.35 in FY2022)
EAF Project TRIR (Rate)	0.59	Over 679,218 hours worked (Nine months ended December 31, 2024)
Community Contributions	$360,000	Across 58 total causes (Nine months ended December 31, 2024)

Finance: Track the public and political response to the 1,000 job cuts; high negative sentiment could translate into future operational friction or regulatory pressure. That's a real social risk that hits the bottom line.

Algoma Steel Group Inc. (ASTL) - PESTLE Analysis: Technological factors

$700 million Electric Arc Furnace (EAF) transformation is Canada's largest industrial decarbonization project.

You need to understand that Algoma Steel Group Inc.'s core technological shift is its massive move from traditional blast furnace steelmaking to Electric Arc Furnace (EAF) technology. This is not just an upgrade; it's a complete transformation with an estimated project cost of $700 million, making it the largest industrial decarbonization project in all of Canada. Honestly, this investment is the single biggest driver of the company's future competitive position.

This technology pivot is crucial because it directly addresses the growing market demand for lower-carbon steel, often called 'green steel.' The cumulative investment in this EAF project had already reached $881 million (Canadian dollars) as of June 30, 2025, showing the sheer scale of capital deployment. The whole point is to replace the old, carbon-intensive operations with a cleaner, more flexible process.

Here's the quick math on the technological impact:

Technological Metric	Value (2025 Data)	Strategic Impact
EAF Project Cost	$700 million	Secures long-term operational viability and government support.
Cumulative Investment (as of Q2 2025)	$881 million (CAD)	Shows defintely strong commitment to the transition timeline.
Carbon Emission Reduction Potential	Up to 70 percent	Meets increasing customer and regulatory demand for low-carbon steel.

Achieved first arc and first steel from EAF Unit 1 in July 2025, with ramp-up in progress.

The transition hit a major, tangible milestone in the 2025 fiscal year. Algoma Steel Group Inc. announced the successful achievement of its first arc and first steel production from EAF Unit One on July 10, 2025. This wasn't just a test; it marked the start of a phased ramp-up that will fundamentally change the company's cost structure and product mix.

The ramp-up is accelerating faster than some competitors might have expected. In response to trade headwinds and a need for greater efficiency, the company approved a plan to accelerate the decommissioning of its blast furnace and coke oven operations. This means the new technology is being brought online faster to replace the old capacity, with a transition to a five-day-per-week operating schedule expected in mid-November 2025. That's a clear action point for investors: watch the production volume from the EAF closely in Q4 2025.

New EAF capacity is anticipated to be approximately 3.7 million tons of raw steel annually.

The new EAF facility is designed for significant volume and efficiency. Once the transformation is complete, Algoma Steel Group Inc.'s facility is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons. This is a critical number because it matches the company's downstream finishing capacity, which means the entire operation will be balanced and more efficient.

This technological alignment is a huge operational opportunity. Matching the raw steel output to the finishing capacity reduces bottlenecks and allows for a smoother, more consistent production flow. It's a smart move that removes a lot of the complexity and cost associated with managing mismatched capacities in the old system.

• Expected Annual Raw Steel Capacity: 3.7 million tons.
• Capacity Goal: Match downstream finishing capacity for efficiency.
• Operational Benefit: Flexibility to produce steel without coal for the first time in over 120 years.

Launching the 'Volta' brand for its new, lower-emission EAF-produced steel products.

The technology has a direct commercial application through the new product brand, 'Volta.' All steel produced through the new EAFs will carry this name, which is a clear signal to the market about its low-emission credentials. For customers like automakers and construction firms who have their own decarbonization mandates, this is a major selling point.

The 'Volta' brand promises the same high performance customers rely on, but with a carbon footprint reduced by up to 70 percent, powered by Ontario's clean electricity grid. This isn't just marketing; it's a strategic move to capture premium pricing and market share in the rapidly growing 'green steel' segment. The technology is creating a new, more valuable product line. Finance: draft a pricing model for 'Volta' that captures a 10% premium over conventional hot rolled coil (HRC) by Q1 2026.

Algoma Steel Group Inc. (ASTL) - PESTLE Analysis: Legal factors

The 50% Section 232 tariff on US-bound steel is the primary, sustained legal trade barrier.

You need to understand the immediate, chilling effect of the US trade policy on Algoma Steel Group Inc.'s market access. The legal landscape here is dominated by the US Section 232 tariff, which was dramatically increased in mid-2025. This isn't a minor fee; it's a major, sustained barrier.

In June 2025, the US government doubled the Section 232 tariff on imported steel to a punitive 50% for most countries, including Canada. This effectively foreclosed access to the US market for Algoma Steel Group Inc., which is Canada's only independent and publicly owned steelmaker. Honestly, a 50% tariff makes selling anything a non-starter.

Algoma Steel Group Inc. has publicly expressed concern over the 'significant impact' this tariff has on its operations and outlook, prompting the company to defintely re-evaluate its sales viability in the US. This legal action forces a strategic pivot away from a key export market, directly impacting revenue projections for the 2025 fiscal year.

Government financing included issuing 6.77 million common share purchase warrants to the federal and provincial governments.

The Canadian government's financial support, while a positive for liquidity, comes with a legal and structural cost: equity dilution risk. In November 2025, Algoma Steel Group Inc. completed a C$500 million financing deal with the Governments of Canada and Ontario.

This seven-year credit facility provides immediate cash flow for the company's Electric Arc Furnace (EAF) transformation, but it grants the governments a future stake. Here's the quick math on the legal obligation:

• Total Financing: C$500 million.
• Warrants Issued: 6.77 million common share purchase warrants.
• Exercise Price: $11.08 per share.
• Term: 10 years.

The warrants were issued proportionately to the Canada Enterprise Emergency Funding Corporation (CEEFC) and the Province of Ontario. They vest, or become usable, as unsecured draws are made under the facilities. This means the governments have a legal right to purchase 6.77 million shares at a fixed price, introducing a potential overhang on the stock if the share price rises significantly above the exercise price.

Financing Component	Source	Amount (C$)	Secured Tranche (C$)
Federal Facility	Canada Enterprise Emergency Funding Corporation (CEEFC)	$400 million	$80 million
Provincial Facility	Province of Ontario	$100 million	$20 million
Total	Governments of Canada and Ontario	$500 million	$100 million

Compliance with evolving Environmental, Social, and Governance (ESG) reporting standards like SASB and TCFD.

Evolving legal and regulatory expectations around climate risk are forcing steelmakers to formalize their environmental disclosures. For Algoma Steel Group Inc., this means aligning its reporting with global standards like the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD).

The company's 2024 Sustainability Report, released in June 2025, confirms this commitment, stating it was prepared in alignment with both the SASB and TCFD frameworks. This is a critical step because investors and regulators increasingly use these disclosures to assess risk-it's not just a PR exercise.

The core legal and regulatory pressure point is the $700-million Electric Arc Furnace (EAF) project. This project is expected to reduce Algoma Steel Group Inc.'s annual carbon emissions by approximately 70% once fully operational in 2025. This massive reduction is the company's primary defense against future carbon taxes and stricter environmental regulations that are almost defintely coming down the pipeline.

What this estimate hides is the legal risk of project delays; if commissioning takes 14+ days longer than planned, the churn risk of losing 'green steel' customers rises. The move to EAF is a proactive legal compliance measure, positioning the company as a low-carbon producer and mitigating the risk of future litigation or carbon-related penalties.

Algoma Steel Group Inc. (ASTL) - PESTLE Analysis: Environmental factors

EAF Project is Expected to Reduce Carbon Emissions by Approximately 70%

You are seeing a seismic shift in the steel industry, and Algoma Steel Group Inc.'s massive investment in Electric Arc Furnace (EAF) technology is the clearest sign of it. This isn't just an upgrade; it's a complete pivot to 'green steel' production, which is defintely a high-stakes move to address environmental pressure.

The core of this strategy is the EAF project, which achieved its first steel production milestone in July 2025. Once both EAF units are fully operational, the company anticipates an annual raw steel production capacity of approximately 3.7 million tons. The environmental payoff is enormous: this transition is expected to reduce Algoma Steel's annual carbon emissions by approximately 70%. Here's the quick math: this translates to a perpetual reduction of up to 3 million tonnes of annual greenhouse gases (GHG). This project is being called the largest industrial decarbonization project in Canada.

• First EAF steel production: July 2025.
• Expected annual CO2 reduction: Up to 3 million tonnes.
• New product brand: Volta™, powered by Ontario's clean electricity grid.

Accelerating the Retirement of High-Carbon Blast Furnace and Coke Oven Operations

The EAF transition means Algoma Steel is actively accelerating the retirement of its legacy, high-carbon integrated steelmaking assets. This is the hard part-managing the transition while maintaining production and liquidity. The plan involves a phased approach, running both the old and new systems in parallel for a period.

Management is accelerating the transition to full EAF production, aiming to significantly draw down inventory starting in the fourth quarter of 2025 and accelerating through 2026 as they exit the blast furnace and coke oven operations. The full shutdown of the coke making, Basic Oxygen Furnace (BOF), and Blast Furnace #7 is expected to be complete by 2027 onwards, moving the company entirely to scrap metal and electricity-based steelmaking.

This strategic move is costly, but it's essential for long-term viability. The cumulative investment in the EAF project reached $910 million by September 30, 2025, with a final projected cost of $987 million. The Canadian and Ontario governments have provided substantial support, including $500 million in financing (announced November 2025), which helps de-risk this massive capital expenditure.

EAF Project Financials and Timeline (FY 2025)	Amount/Metric	Status/Context
Cumulative Investment (as of Sep 30, 2025)	$910 million	Towards EAF project completion.
Final Projected Cost	$987 million	Total cost of the EAF transformation.
Government Financing Secured (Nov 2025)	$500 million	From the Governments of Canada and Ontario.
Full EAF Operation Expected	2027	Target for complete shutdown of Blast Furnace #7 and coke ovens.

Company is a Member of the Canadian Steel Producers Association, Targeting Carbon Neutrality by 2050

Algoma Steel is aligned with the broader industry's long-term environmental goals through its membership in the Canadian Steel Producers Association (CSPA). This collective commitment sets an aspirational goal of achieving carbon neutrality by 2050. This target aligns with Canada's commitments under the Paris Agreement, positioning the company not just as a compliance player, but as a climate change leader in the Canadian steel industry.

The EAF project is the first, but not the last, step toward this 2050 goal. The shift to EAF, which uses Ontario's clean electricity, immediately addresses the bulk of their Scope 1 emissions (direct emissions from owned or controlled sources). The company is also actively monitoring its environmental performance using metrics set out by the Task Force on Climate-related Financial Disclosures (TCFD), showing a commitment to transparency and governance on climate risk.

Moving to EAF is a strategic necessity, not charity.

Next step: Operations: Monitor EAF Unit 1's ramp-up efficiency and scrap metal sourcing logistics for Q4 2025.