Algoma Steel Reaches Tentative Agreement with USW Local 2724
20 Juli 2022 - 6:30PM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or the
“Company”) announced today that the Company has reached a tentative
agreement for a new labour contract with United Steelworkers
(“USW”) Local 2724, the union representing its technical,
professional and front-line supervisory employees. The current
collective agreement expires July 31, 2022. Ratification votes are
scheduled for July 21st through July 25th, 2022. The Company will
not be releasing details of the tentative agreement until after the
Union has held its information meetings.
Discussions are ongoing between the Company and
the hourly employees represented by USW Local 2251, and the Company
looks forward to reaching an agreement before the contract expires
on July 31, 2022, ensuring the continuation of the Company’s
forward momentum.
Algoma President and Chief Executive Officer
Michael Garcia commented on the outcome, “We are pleased that we
have reached a tentative agreement with our salaried union local
that provides an economic package that is acceptable to both
parties and sets out the process to transition the workforce to
electric arc steelmaking. We look forward to continuing our work
together as we navigate Algoma’s transformation, positioning the
Company for a secure, sustainable future as a leading producer of
green steel.”
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”), including statements regarding
anticipated new labour agreements with Algoma’s salaried and hourly
employees, and Algoma’s transition to electric arc steelmaking, its
future as a leading producer of green steel, and Algoma’s expected
enhanced long-term profitability, cost-cutting initiatives,
modernization of its plate mill facilities, transformation journey,
investment in its people, processes, optimization and
modernization, and growing capability and courage to meet the
industry’s challenges. These forward-looking statements generally
are identified by the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “pipeline,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and
similar expressions. Forward-looking statements are predictions,
projections, and other statements about future events that are
based on current expectations and assumptions. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this document. Readers should
consider the risks and uncertainties set forth in the section
entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in Algoma’s Annual Report on Form 20-F,
filed by Algoma with the Ontario Securities Commission (the “OSC”)
(available under the company’s SEDAR profile at www.sedar.com) and
with the Securities and Exchange Commission (the “SEC”) (available
at www.sec.gov), as well as in Algoma’s current reports with
the OSC and SEC. Forward-looking statements speak only as of
the date they are made. Readers are cautioned not to put undue
reliance on forward-looking statements, and Algoma assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
About Algoma Steel Group
Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. With a current raw steel
production capacity of an estimated 2.8 million tons per year,
Algoma’s size and diverse capabilities enable it to deliver
responsive, customer-driven product solutions straight from the
ladle to direct applications in the automotive, construction,
energy, defense, and manufacturing sectors. Algoma is a key
supplier of steel products to customers in Canada and Midwest USA
and is the only producer of plate steel products in Canada. The
Company’s mill is one of the lowest cost producers of hot rolled
sheet steel (HRC) in North America owing in part to its
state-of-the-art Direct Strip Production Complex (“DSPC”), which is
the newest thin slab caster in North America with direct coupling
to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful
improvements over the last several years that are expected to
result in enhanced long-term profitability for the business. Algoma
has upgraded its DSPC facility and recently installed its No. 2
Ladle Metallurgy Furnace. Additionally, the Company has
cost-cutting initiatives underway and is in the process of
modernizing its plate mill facilities.
Today Algoma is on a transformation journey.
Algoma is investing in its people and processes, optimizing and
modernizing to secure a sustainable future. Our customer focus,
growing capability and courage to meet the industry’s challenges
head-on, position us firmly as your partner in steel.
For more information contact:
Brenda StentaManager Communications & BrandingAlgoma Steel
Group Inc.Phone: 705.206.1022E-mail: brenda.stenta@algoma.com
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