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Algoma Steel warns of shipment disruptions caused by electric arc furnace outage

Algoma Steel warns of shipment disruptions caused by electric arc furnace outage



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Vehicles leave Algoma Steel in Sault Ste. Marie, Ont., in March.Deborah Baic/The Globe and Mail

Algoma Steel ASTL-T said on Monday future shipment volumes could be affected due to an outage at its captive power plant that forced the suspension of operations at its electric arc furnace.

Algoma said one turbine unit at its Lake Superior Power facility was taken offline after detecting an abnormal condition, while the remaining units continued operating.

U.S.-listed shares of the company (ASTL-Q) were down 5.3 per-cent premarket.

The steelmaker expects the electric arc furnace outage to last no more than 21 days as it works with GE Vernova GEV-N to commission a contracted spare turbine at the site.

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The company said alternative onsite power arrangements being evaluated with Ontario’s Independent Electricity System Operator could allow EAF operations to restart within about 10 days, if approved.

Algoma said finishing and shipping activities were continuing, with no significant impact expected on committed customer deliveries.

The company said it is assessing the outage’s duration and related operational and financial impacts and will provide an update once the assessment is complete and a restart timeline for EAF operations is established.