Algoma Steel Group Inc. (ASTL): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da fabricação de aço canadense, o Algoma Steel Group Inc. (ASTL) está em uma encruzilhada crítica de transformação, navegando em desafios globais complexos por meio da inovação estratégica e adaptabilidade. Dos movimentados corredores industriais de Sault Ste. Marie para a intrincada rede de políticas comerciais internacionais, a jornada da ASTL reflete uma narrativa convincente de avanço tecnológico, mordomia ambiental e resiliência econômica. Essa análise abrangente de pestles revela os fatores multifacetados que moldam a trajetória da empresa, oferecendo informações sobre como um fabricante de aço tradicional está reimaginando seu futuro em uma era de mudança e sustentabilidade sem precedentes.

Algoma Steel Group Inc. (ASTL) - Análise de Pestle: Fatores Políticos

As políticas de importação de aço do governo canadense impactam o acesso ao mercado

Em 2023, o Canadá impôs a seção 232 tarifas de aço de 25% sobre as importações de aço de países fora do Canadá e do México. Essas tarifas afetam diretamente as estratégias de posicionamento e importação/exportação da ASTL.

Política	Porcentagem de impacto	Ano implementado
Tarifas de importação de aço	25%	2018
Disposições de aço do contrato comercial da USMCA	98% de acesso isento de impostos	2020

Iniciativas federais e provinciais de aço verde

O governo canadense cometeu CAD 1,2 bilhão em investimentos em tecnologia de aço verde até 2030.

• Investimento federal de aço verde: CAD 550 milhões
• Ontario Provincial Green Manufacturing Incentives: CAD 250 milhões
• Alvo de redução de carbono para setor de aço: 40% até 2030

Regulamentos de preços de carbono

Atualmente, o mecanismo de precificação de carbono do Canadá está definido em CAD 65 por tonelada métrica de CO2 equivalente, aumentando anualmente.

Ano	Preço de carbono (CAD/TON)	Aumento projetado
2024	65	8.3%
2025	80	23%

Acordos comerciais que moldam a paisagem competitiva

O Acordo dos Estados Unidos-México-Canadá (USMCA) fornece vantagens comerciais significativas para a ASTL.

• Acesso ao mercado de aço dos EUA: 98% isento de impostos
• Volume anual de comércio de aço conosco: CAD 6,2 bilhões
• Taxas tarifárias preferenciais: 0-2,5% para a maioria dos produtos de aço

Algoma Steel Group Inc. (ASTL) - Análise de pilão: Fatores econômicos

A volatilidade no preço global do aço afeta diretamente a receita da empresa

A partir do quarto trimestre de 2023, os preços globais do aço mostrou volatilidade significativa. A receita da Algoma Steel foi diretamente influenciada por essas dinâmicas de mercado.

Ano	Preço de aço (USD/TON)	Receita de aço Algoma (CAD)
2022	$800	US $ 1,42 bilhão
2023	$650	US $ 1,18 bilhão

Demand de influências econômicas do setor manufatureiro canadense

O desempenho do setor de manufatura canadense se correlaciona diretamente com a demanda de aço.

Ano	PIB de fabricação (CAD)	Emprego de fabricação
2022	US $ 174,3 bilhões	1,7 milhão
2023	US $ 168,9 bilhões	1,65 milhão

Flutuações de taxa de câmbio entre CAD e USD afetam a competitividade de exportação

As variações da taxa de câmbio afetam significativamente as estratégias de exportação da Algoma Steel.

Ano	Taxa de câmbio CAD/USD	Volume de exportação (toneladas)
2022	0.74	425,000
2023	0.76	410,000

Investimento contínuo em atualizações de modernização e tecnologia

A Algoma Steel continua a investir em melhorias tecnológicas.

Ano	Despesas de capital (CAD)	Investimento em tecnologia
2022	US $ 95 milhões	Forno de arco elétrico
2023	US $ 110 milhões	Sistemas de automação

Os principais indicadores econômicos demonstram o complexo cenário econômico que afeta as operações comerciais da Algoma Steel.

Algoma Steel Group Inc. (ASTL) - Análise de pilão: Fatores sociais

Demografia da força de trabalho em Sault Ste. Marie

A partir de 2022, Sault Ste. Marie tem uma população total de 73.368. A taxa de participação da força de trabalho é de 54,3%. O emprego no setor manufatureiro é responsável por 12,4% da força de trabalho total.

Faixa etária	Porcentagem na força de trabalho
15-24 anos	11.2%
25-54 anos	65.7%
55 anos ou mais	23.1%

Práticas de fabricação sustentáveis

Alvo de redução de emissões de carbono: 30% até 2030. Emissões anuais de gases de efeito estufa atuais: 1,2 milhão de toneladas métricas.

Métrica de sustentabilidade	Desempenho atual
Conteúdo de aço reciclado	62%
Melhoria da eficiência energética	15% desde 2018

Responsabilidade social corporativa

Investimento comunitário anual: US $ 1,2 milhão. Doações de caridade locais: US $ 350.000 em 2023.

• Programas de apoio à educação: US $ 250.000
• Iniciativas ambientais: US $ 400.000
• Programas de saúde comunitária: US $ 150.000

Escassez de mão -de -obra qualificada

Habilidades de fabricação lacuna em Ontário: 31%. As posições técnicas não preenchidas da Algoma Steel: 42 funções.

Categoria de habilidade	Taxa de vacância
Soldagem	18%
Usinagem CNC	15%
Engenharia de processos	9%

Algoma Steel Group Inc. (ASTL) - Análise de Pestle: Fatores tecnológicos

Implementação contínua da tecnologia de forno de arco elétrico

A Algoma Steel investiu US $ 300 milhões em tecnologia de forno de arco elétrico (EAF) em seu Sault Ste. Facilidade de Marie. O projeto de modernização da EAF deve reduzir as emissões de CO2 em 70% em comparação com os métodos tradicionais de forno de explosão. A capacidade de produção atual através da EAF Technology é de 1,2 milhão de toneladas por ano.

Tecnologia	Investimento	Redução de emissão	Capacidade de produção anual
Forno de arco elétrico	US $ 300 milhões	70%	1,2 milhão de toneladas métricas

Transformação digital em processos de fabricação

A Algoma Steel implementou tecnologias digitais avançadas com um investimento de US $ 25 milhões na otimização do processo de fabricação. As iniciativas de transformação digital resultaram em uma melhoria de 12% na eficiência operacional e uma redução de 15% no tempo de inatividade da produção.

Métricas de transformação digital	Valor
Investimento	US $ 25 milhões
Melhoria da eficiência operacional	12%
Redução de tempo de inatividade da produção	15%

Investimento em sistemas de produção de automação e IA

A Algoma Steel alocou US $ 40 milhões para a Automação Avançada e as tecnologias de IA. A empresa integrou Algoritmos de aprendizado de máquina no controle de qualidade, alcançar uma taxa de precisão da qualidade do produto de 98,5%. Os sistemas robóticos agora lidam com 35% das tarefas da linha de produção.

Investimento de automação	Precisão da qualidade	Cobertura de tarefa robótica
US $ 40 milhões	98.5%	35%

Compromisso em reduzir as emissões de carbono por meio da inovação tecnológica

A Algoma Steel tem como alvo uma redução de 60% nas emissões de gases de efeito estufa até 2030 por meio de inovações tecnológicas. A empresa já implementou a tecnologia de ferro reduzido direto (DRI) baseado em hidrogênio, investindo US $ 150 milhões em processos de produção de aço de baixo carbono.

Alvo de redução de emissão	Tecnologia	Investimento em tecnologia de baixo carbono
60% até 2030	DRI baseado em hidrogênio	US $ 150 milhões

Algoma Steel Group Inc. (ASTL) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos canadenses de proteção ambiental

O Algoma Steel Group Inc. está sujeito à Lei de Proteção Ambiental do Canadá (CEPA). A empresa investiu US $ 85 milhões em atualizações ambientais em 2022 para cumprir metas de redução de emissões. A licença de aprovação de conformidade ambiental (ECA) da Ontario nº A100105 governa o desempenho ambiental da empresa.

Regulamento	Métrica de conformidade	Status atual
Emissões de gases de efeito estufa	Alvo de redução de CO2	Redução de 70% até 2030
Regulamentos de descarga de água	Níveis máximos de poluentes	Dentro de 98,6% dos limites permitidos
Gerenciamento de resíduos	Taxa de reciclagem	62,3% de resíduos industriais reciclados

Padrões de segurança no local de trabalho e adesão à lei trabalhista

A Algoma Steel está em conformidade com a Lei de Saúde e Segurança Ocupacional de Ontário. A empresa registrou 2,4 incidentes no local de trabalho por 200.000 horas de trabalho em 2023, significativamente abaixo da média da indústria de 3,7.

Métrica de segurança	2023 desempenho	Requisito regulatório
Taxa de lesão por tempo perdido	1,2 por 100 trabalhadores	Máximo 3,5 permitido
Horário de treinamento de segurança	42 horas por funcionário	Mínimo 24 horas necessárias
Reivindicações de compensação do trabalhador	17 reivindicações apresentadas	Processado dentro de 30 dias

Proteção de propriedade intelectual para inovações tecnológicas

A Algoma Steel detém 7 patentes ativas relacionadas às tecnologias de produção de aço. Os registros do Escritório de Propriedade Intelectual do Canadá mostram 3 novos pedidos de patente arquivados em 2023.

Requisitos regulatórios para produção de aço e emissões

A empresa adere ao Padrões de emissões de produtores de aço canadense. Em 2023, a Algoma Steel atendeu a 100% dos requisitos regulatórios do Conselho Canadense de Ministros do Meio Ambiente (CCME).

Tipo de emissão	Limite regulatório	Desempenho de aço Algoma
Material particulado	50 mg/nm³	38,6 mg/nm³
Dióxido de enxofre	500 ppm	276 ppm
Óxidos de nitrogênio	300 mg/nm³	212 mg/nm³

Algoma Steel Group Inc. (ASTL) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir as emissões de gases de efeito estufa

A Algoma Steel visa reduzir as emissões de gases de efeito estufa (GEE) em 70% até 2030 em comparação com os níveis de linha de base de 2018. As emissões totais de GEE da empresa em 2022 foram 2,05 milhões de toneladas de equivalente a CO2.

Ano	Emissões de GEE (toneladas CO2E)	Alvo de redução
2018 (linha de base)	2,85 milhões	N / D
2022	2,05 milhões	28% de redução
2030 (alvo)	0,86 milhão	Redução de 70%

Transição para métodos de produção de aço mais sustentáveis

A Algoma Steel está investindo US $ 250 milhões em tecnologia de forno de arco elétrico (EAF) para reduzir as emissões de carbono. Espera -se que o projeto EAF diminua as emissões de CO2 em aproximadamente 70% em comparação com os métodos tradicionais do forno de explosão.

Iniciativas de economia circular em processos de fabricação

A empresa recicla aproximadamente 500.000 toneladas de sucata de aço anualmente, representando 35% de sua produção total de aço. A Algoma Steel implementou um sistema de reciclagem de circuito fechado que minimiza o desperdício e maximiza a eficiência dos recursos.

Métrica da Economia Circular	Volume anual	Porcentagem de produção
Sucata de aço reciclada	500.000 toneladas	35%
Reutilização de material interno	75.000 toneladas	5.3%

Programas de gerenciamento e reciclagem de resíduos

A Algoma Steel implementou programas abrangentes de gerenciamento de resíduos, alcançando uma redução de 42% nos resíduos industriais enviados para aterros sanitários. A empresa desvia 85% de seus resíduos industriais por meio de iniciativas de reciclagem e redação.

• Redução de resíduos industriais: 42%
• Taxa de desvio de resíduos: 85%
• Investimento anual de gerenciamento de resíduos: US $ 3,2 milhões

Investimento em tecnologia verde e estratégias de redução de carbono

A Algoma Steel comprometeu US $ 400 milhões a iniciativas de tecnologia verde entre 2022-2030. A estratégia de redução de carbono da empresa inclui investimentos em energia renovável, tecnologias de eficiência energética e métodos de produção de baixo carbono.

Investimento em tecnologia verde	Montante total	Período de investimento
Investimento total em tecnologia verde	US $ 400 milhões	2022-2030
Projeto de forno de arco elétrico	US $ 250 milhões	2022-2025
Infraestrutura de energia renovável	US $ 85 milhões	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.