Steel Mills

Algoma Slates Two 20-Day Outages To Bring Plate Project Online
Written by Laura Miller
November 3, 2023
Canada’s Algoma Steel is planning two 20-day outages next year as it brings the second phase of its plate mill modernization project online.

The first outage will occur in April 2024, and the Sault Ste. Marie, Ontario-based steelmaker will upgrade the 4Hi DC drive and the 2Hi onboard descaling system.
The second outage will come later in 2024, aligned with another planned maintenance outage, the company said. During the outage, upgrades will be made to the 4Hi onboard descaling system, and to the 4Hi mill alignment and work roll offset.
Two 20-day outages instead of one 40-day outage will help to mitigate the impact on the company’s customer base while also reducing commissioning risks, CEO Michael Garcia said on the company’s quarterly earnings call with analysts.
Despite the outages, production volumes are expected to be maintained throughout the year, Garcia said.
The CAD$135 million plate mill modernization project began in 2019. The first phase, completed in June 2022, focused on quality. The second phase, currently in the commissioning phase, is focused on productivity.
The company has installed and is presently commissioning the inline dividing shear and plate piler. The shear is expected to come online later this month. The work should be wrapped up by year’s end, allowing for higher production levels and the building of inventory in preparation for the planned outages.
“We expect to build inventories further during the calendar fourth quarter ahead of winter as we typically do at this point in the year and to release inventories in the first half of calendar 2024, heavily weighted towards the first quarter,” commented CFO Rajat Marwah.
Algoma’s Plate Business
As Canada’s only producer of discrete plate, the plate business is a very important segment for the steelmaker.
Roughly 70% of Algoma’s plate sales are to Canadian customers, with the remaining 30% going to the US, Garcia said.
Garcia commented that the company is “still seeing pretty robust demand from the plate business.” He noted some segments may be under a little more pressure than others, such as wind, but that isn’t a segment the company participates in.
“We still feel relatively confident about the plate spread and where our book of business is,” he stated.
Having encountered challenges during the first phase of the modernization project, the company is now working to recover its position with historical plate customers, Garcia noted.

Laura Miller
Read more from Laura MillerLatest in Steel Mills

Nucor names Batterbee, Bledsoe to HR roles
Nucor Corp. has promoted Thomas J. Batterbee to the position EVP of human resources and talent and appointed Elizabeth Bledsoe to the newly created position of president of human resources and talent.

Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.

USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.

SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.

POSCO inks MoU with Hyundai on Louisiana EAF mill
POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.