Algoma Steel Group Inc., parent company of Algoma Steel Inc. (Algoma), a Canadian producer of hot- and cold-rolled steel sheet and plate products, announced the completion of its merger with Legato Merger Corp. The transaction, which takes Algoma public, provides net proceeds of approximately $306 million to the company. These funds are expected to be used for strategic investments, including Algoma’s proposed transformation to electric-arc furnace (EAF) steelmaking.
Michael McQuade, CEO of Ontario-based Algoma, said, “In two short years, we upgraded our cornerstone asset, the Direct Strip Production Complex, we constructed our second ladle-metallurgy facility, and we embarked on an extensive upgrade to our plate mill – Canada’s only discrete plate and heat-treating facility. The momentum is building as we look to a proposed transition to EAF steelmaking, a fundamental change that has the potential to increase our production capacity while shrinking our environmental footprint with a reduction of more than 70% in carbon emissions.”