Welcome, guest !

Essar Steel Algoma Is Trying to Overcome Industry Crisis

30/11/2015

Essar Steel Algoma

Essar Steel Algoma was given a repayable dotation of almost $30 million by the Advanced Manufacturing Fund. With the help of it the company will produce much more steel grades, improve the quality of steel and improve the levels of manufacturing according to the demand. By this modernizaton the company will be able to manufacture updated heat-treated steel plate grades. Canada wouldn't be able to function without this project.

Essar Steel Algoma also foresees that in the near future it will be able to suggest more than 200 new posts and to keep on maintaining about 2,500 workers.

By China dominates at steel market and its production is equal to half of the world market. China is the most powerful growing manufacturer and consumer of steel and it is not going to change in the future. Many other countries are also showing strong and fast growth in steel production and consumption. They are Japan, Iran, India, Mexico and others. General steel standard will depend on new economies and their development, growth and domestic policies as this is the Chinese domestic policy influencing steel production. Nevertheless, economic conditions of the global steel industry are quite cloudy and challenging.

This situation affected not only Canada but other countries, including European. But USW Ontario Director Marty Warren said that they were going to take considerable, immediate action to maintain their steel sector and improve its situation, and to resist the dumping of cheap, subsidized steel into their markets. He also added that they needed a similar response as in European countries because Canadian workers and pensioners were asking questions to the government concerning this entire situation, about their jobs and their communities.

Essar Steel Algoma is among the biggest steel companies in Canada and it is the largest employer in Sault Ste. Marie, Ont., with close to 3,000 employees. It's a subsidiary company of Essar Steel, global producer based in India. Essar Steel Algoma can make updated steel grates of high quality. So, this fact is crucial for Canadian industry. Steel is essential input in many strategic spheres as energy and shipbuilding, defense and others. For now this company is the only in Canada to manufacture marine-grade steel plate and it gives the company an opportunity to provide domestic shipbuilders with Canadian-made steel.

Essar Steel Algoma takes one of the dominant places in steel industry as it won a struggle against organized activity. Once the Ontario government passed new rules allowing the reduction of its pension and subsidy that were rejected by the company and it considered them to be unsustainable.

Steel industry is well developed in Canada. The country carries more than 100,000 posts and much more pensioners directly and indirectly.

The Canadians say they need honest trade rules because they have determined costs for healthcare and safety, for ecology protection, etc.People are complaining that the governments keep on allowing the dumping of cheap steel from countries neglecting such important issues. People say that in those countries the environment is polluted much and human rights are violated at their workplaces.

Standard & Poor's, an American financial services company, claims that Essar Steel Algoma will face a crisis with cash flow in the half of the year unless the prices for steel change in near future.

It also says Essar Steel Algoma may have to sell funds or get financial help from its parent company to meet its cash crisis.

The contributors will raise their credit scoring on Essar Steel Algoma if steel prices go straightly higher and be such over the next several months.

This industry crisis has led to the shutdowns of many factories in North America and Europe, great financial problems at big steel market. The Algoma is also an example. It demands from the government to raise tariffs on China steel.

Steel making is not the titan it once was. The same situation may be seen with all sectors of Canadian production. But steel industry is the backbone of manufacturing.

This company hopes that this huge contribution would provide its competitiveness in the near future. This characteristic will help to improve the capacities necessary for industry. In this case the company will produce more products and with the help of this it will increase the total steel output. Such contribution will help to adopt advanced automation technology with implementation of new steel refining machines.

Moreover, it is expected that these improvements will cause to the production of wider range of steel grades. The quality of steel will increase and the production levels will be able to meet the demands.

About company

Essar Steel Algoma Inc. is situated in Sault Ste. Marie, Ontario.

It is a completely united and integrated steel manufacturer; the company gets its revenues basically from the production and sale of hot and cold rolled steel products including sheet and plate.

The company was founded in 1901 as Algoma Steel, the company was bought in June 2007 by Essar Steel Holdings Limited.

The company sells its products to the customers in different spheres, especially light manufacturing, building, shipbuilding, energy, automotive sphere and steel distribution.

Source: https://trade-metal.com/news-essar-steel-algoma-is-trying-to-overcome-industry-4.html

This material is protected by copyright.
Any copying and distributing without active hyperlink is strictly prohibited!

All news