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Algoma Steel to Cut About 1,000 Jobs in Sault Ste. Marie as Blast Furnace Shuts Early

The company blames U.S. tariffs for hastening its switch to electric‑arc furnaces despite recent $500 million in government loans.

Overview

  • Layoff notices take effect March 23, 2026, tied to the closure of blast‑furnace and coke‑making operations and an accelerated move to electric‑arc furnace production in early 2026.
  • Union leaders say about 900 members of USW Local 2251 and roughly 150 from Local 2724 received notices, with totals cited around 1,050 as lists are reviewed.
  • Algoma says a 50% U.S. steel tariff sharply limited access to its largest export market and contributed to steep recent losses and tariff‑related costs.
  • Ontario Premier Doug Ford and CEO Michael Garcia say federal and provincial officials knew layoffs were likely before approving $500 million in loans, which governments defend as preserving capacity and jobs.
  • Ontario is activating a POWER support centre for displaced workers and federal officials point to domestic procurement efforts as unions prepare retraining and transition assistance.