Home Manufacturer fund Federal government announces up to $ 420 million for Algoma Steel’s ‘green’ plan

Federal government announces up to $ 420 million for Algoma Steel’s ‘green’ plan

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Announcement represents one of the largest fundraising announcements in city history

Prime Minister Justin Trudeau was at Algoma Steel this morning to announce his support for the Sault steelmaker’s proposal to make greener products.

The full text of a press release from Algoma Steel Inc. follows.

The potential of Algoma Steel Inc. (“Algoma Steel”) to become the “greenest” flat-rolled steel producer in Canada marked another milestone today with the Government of Canada’s commitment to a financial support of up to $ 420 million. Unless otherwise indicated, all amounts are in Canadian dollars.

The Right Honorable Prime Minister of Canada Justin Trudeau was on hand today with the Minister of Innovation, Science and Industry, the Honorable François Phillippe Champagne, to make the announcement to facilitate the proposed transformation from Algoma Steel to Electric Arc Furnace (EAF) steel fabrication. The financial commitment includes up to $ 200 million from Innovation, Science and Economic Development Canada’s Strategic Innovation Fund (SIF) through the Net Zero accelerator to rapidly accelerate decarbonization projects and accelerate industrial transformation of Canada.

Under an investment principle agreement, the Canada Infrastructure Bank is committing to invest an additional $ 220 million in the project. The funding will be provided over four years and will support thousands of great direct and indirect jobs in Sault Ste. Marie and the Province of Ontario, and ensure that green steel products are available for inclusion in automobiles, consumer products and renewed infrastructure that uses Algoma steel. one of the lowest costs per tonne of GHG reduction in Canada.

Combined with Ontario’s low-carbon energy, Algoma Steel will position itself as the “greenest” flat-rolled steel producer in Canada and among the greenest in North America.

Algoma Steel CEO Michael McQuade commented on today’s development: the transformation to EAF steel is a reality. We had the honor of welcoming Prime Minister Trudeau and Minister Champagne today and took the opportunity to present our new pocket metallurgy furnace # 2, another important step in the transformation journey of ‘Algoma Steel that we ordered last February. Momentum is building on our path to our increased sustainability, with the promise of good, secure jobs and a greener future for our community and our customers. ”

Caution regarding forward-looking statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements are generally identified by the words “believe”, “plan”, “expect”, “anticipate”, “estimate”, “intend”, “strategy”, “future”, “opportunity”. “,” Plan, “” pipeline “,” may “,” should “,” will “,” would “,” will “,” continue “,” will probably “and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. There are many factors that could cause actual future events to differ materially from the forward-looking statements contained in this document, including, but not limited to: the risk that the anticipated benefits from Government of Canada funding will not materialize as expected or do not materialize at all; Algoma Steel’s ability to implement and deliver on its business plans, including Algoma’s ability to transform into an EAF; and Algoma Steel’s ability to reduce its carbon intensity.

The above list of factors is not exhaustive and readers should also consider other risks and uncertainties set out in subsequent filings with the United States Securities and Exchange Commission (the “SEC”), including the proxy circular / prospectus described below to be filed by The parent company of Algoma Steel (“Algoma”) and Legato Merger Corp. (“Legato”) in connection with their previously announced merger transaction (the “Transaction”). Forward-looking statements speak only as of the date on which they are made.

Readers are cautioned not to place undue reliance on forward-looking statements, and Algoma and Legato assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Additional information and where to find it

This press release is not a proxy or solicitation of any proxy, consent or authorization with respect to any security or with respect to the Transaction and does not constitute an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange securities or the solicitation of a vote or approval in any jurisdiction, and there shall be no sale, purchase or exchange of securities or soliciting a vote or approval in a jurisdiction in violation of applicable law.

In connection with the proposed transaction between Algoma and Legato, Algoma will file with the SEC a registration statement on Form F-4 that will include its prospectus as well as Legato’s proxy circular (the “Proxy / Prospectus Statement”). . Legato plans to mail the proxy statement / final prospectus to its shareholders as part of the transaction once available. INVESTORS AND HOLDERS OF SECURITIES IN LEGATO ARE URGED TO READ CAREFULLY THE PROXY STATEMENT / PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN LEGATO, IMPORTANT INFORMATION, TRANSACTIONARIES AND RELATED TRANSACTIONS.

Investors and securityholders will be able to obtain free copies of the proxy / prospectus (when available) and other documents filed with the SEC by Algoma and Legato through the website maintained by the SEC at the address www.sec.gov. In addition, investors and security holders will be able to obtain free copies of documents filed with the SEC on Legato’s website at https://legatomerger.com or by making a written request to Legato at 777 Third Avenue, 37th Floor, New York, NY 10017 or by contacting Algoma at 705.206.1022 or [email protected]

Participants in the call for tenders

Legato, Algoma and certain of their respective directors, officers and employees may be considered participants in the solicitation of proxies in connection with the Transaction. Information regarding persons who may, under SEC rules, be considered participants in the solicitation of Legato shareholders in connection with the Transaction, including a description of their respective direct or indirect interests, by title or otherwise, will be included in the proxy / prospectus described above when filed with the SEC.

Additional information regarding the directors and officers of Legato is also available in Legato’s final prospectus dated January 19, 2021 and filed with the SEC on January 21, 2021. These documents are available free of charge as described above.

About Algoma Steel 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 crude steel production capacity of approximately 2.8 million tonnes per year, Algoma’s diverse size and capabilities enable it to deliver responsive, customer-focused product solutions straight from pocket to pocket. direct applications in the automotive, construction, energy, defense and manufacturing sectors. Algoma is a key supplier of steel products to customers in Canada and the Midwestern United States and is the sole producer of sheet steel products in Canada. The Company’s plant is one of the cheapest hot-rolled steel sheet (HRC) producers in North America, in part thanks to its state-of-the-art direct strip production complex 4 Algoma Steel Inc. | 105 West Street, Sault Ste. Marie, ON, Canada P6A 7B4 | Phone. : 705-945-2351 Fax. : 705-945-2203 | algoma.com YOUR PARTNER IN STEEL. SINCE 1901 (“DSPC”), which is the most recent thin slab casting in North America with direct coupling to a Basic Oxygen Furnace (BOF) smelter. Algoma has made several significant improvements over the past few years that should translate into increased long-term profitability for the business. Algoma upgraded its DSPC facility and recently installed its # 2 ladle metallurgy furnace. In addition, the Company has initiated cost reduction initiatives and is investing to modernize its plate rolling mill facilities. Today, Algoma returns to its roots as a customer-centric and entrepreneurial company with the courage and growing ability to meet industry challenges head-on. It invests in its people and processes, optimizing and modernizing itself so that it can continue to be your partner in steel.