Essar Steel is planning to invest 160 million US dollar to increase the capacity of Algoma Steel. Algoma Steel Inc is a106-year-old Canadian steel company which was acquired by Essar Steel in June 2007 for Canadian $1.85 billion. The company changed its name to Essar Algoma Steel Inc to represent new ownership.

In the expansion plans, the company would re-start an idle blast furnace, plate heat-treatment and a second ladle metallurgy furnace in the financial year 2009.

The Vice-President – Finance, Essar Algoma Steel, Mr Sandeep Dixit said that the funds for expansion would be arranged from internal accruals and some financial institutions. 

The steel production of the company has increased from 2.1 m.t. a year to 2.8 metric tonns. It would be further increased to 3.6 metric tonns within a year. The company has also completed a 20-year power purchase agreement with Ontario Province for its cogeneration plant. 

The plant would also decrease the emission of Nitrous Oxide by 15 per cent as it uses waste gas for power generation. Essar Algoma Steel is applying various emission control measures to reduce coal pile emissions by 50 per cent.

The company is also talking with some companies in Sault Ste. Marie such as Tenaris, a pipe manufacturer; Purvis Marine; and St Mary’s Paper to develop a port on its western perimeter for handling more number of ships.