Algoma Steel Pivots to Canadian Defence Amid U.S. Tariffs

Algoma Steel is shifting its operational focus toward the Canadian defence market to offset the impact of heavy U.S. tariffs that have restricted its access to American markets. Based in Sault Ste. Marie, the company has operationalized its first electric arc furnace (EAF), a transition that reduced greenhouse gas emissions by 70% but resulted in over 1,000 layoffs.

To secure domestic growth, the company formed Roshel Algoma Defence (RAD) with Roshel Inc. to produce ballistic steel, a venture expected to create 500 jobs. Algoma Steel also entered joint ventures with Ontario Shipyards to supply the Royal Canadian Navy and signed a memorandum of understanding with Hanwha Ocean to support Canada's future submarine program.

A second EAF is expected to be online by the end of 2026, though this timeline is contingent on the completion of a new 230 kV transmission line from PUC Transmission.