Algoma Steel Confirms USW Local 2251 Agreement Ratified

Rhea-AI Summary

Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) has successfully ratified a new 5-year collective agreement with United Steelworkers Local 2251, representing its hourly employees. This follows a prior agreement with the union representing technical and supervisory staff. CEO Michael Garcia highlighted the agreements' role in Algoma's commitment to transformation towards green steel production, focusing on profitability and operational efficiency. The company aims to modernize facilities and implement cost-cutting measures while enhancing employee investment.

Positive

• Successfully ratified a new 5-year collective agreement with hourly employees.
• Prior agreement with technical and supervisory staff also ratified, ensuring stable labor relations.
• Focus on transformation towards green steel production and operational efficiency.
• Investment in modernization of facilities and cost-cutting initiatives.
• Targeting enhanced long-term profitability strategies.

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• None.

SAULT STE. MARIE, Ontario, Aug. 30, 2022 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma’ or “the Company”) reports it has been notified by United Steelworkers (“USW”) Local 2251, the union representing Algoma’s hourly employees, that their members have successfully ratified the terms of the new 5-year collective agreement.

This agreement follows the agreement with the United Steelworkers Local 2724, the union representing its technical, professional, and front-line supervisory employees ratified on July 26, 2022.

Algoma President and Chief Executive Officer, Michael Garcia commented on the outcome, “With agreements in place with both our salaried and hourly employees, we can continue our focus on serving our customers and furthering Algoma’s transformation journey to become a leading producer of green steel. We will continue to build value for our shareholders as we work safely as a team, as an employer of choice, a responsible community steward, and a reliable partner in steel for our customers.”

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 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 Stenta
Manager Communications & Branding
Algoma Steel Group Inc.
Phone: 705.206.1022
E-mail: brenda.stenta@algoma.com

FAQ

What is the significance of Algoma's new collective agreement with USW Local 2251?

The new 5-year collective agreement with USW Local 2251 ensures labor stability and allows Algoma Steel to focus on its strategic goals, including the transition to green steel production.

How does Algoma's recent labor agreement affect its stock performance?

The ratification of labor agreements may positively influence investor confidence and the company's stock performance due to anticipated operational stability.

What are Algoma's future plans regarding green steel production?

Algoma aims to transform into a leading producer of green steel, focusing on modernization and sustainable practices to enhance long-term profitability.

When were the labor agreements with USW Local 2251 and Local 2724 ratified?

The agreement with USW Local 2251 was ratified on August 30, 2022, following the ratification with Local 2724 on July 26, 2022.

What is Algoma Steel's current production capacity?

Algoma Steel has a raw steel production capacity of approximately 2.8 million tons per year.