- Algoma Steel is shedding more light on the collapse of a utilities piping structure at its Sault Ste. Marie, Ontario, coke-making plant in the early morning hours of Saturday
- Shipments will be affected for the next two weeks because of limited production during repairs
- Algoma Steel is Canada’s only producer of discrete plate products and one of the lowest-cost producers of hot-rolled sheet steel in North America
- Algoma Steel stock is up by 18.39 per cent year-over-year, but has lost 17.97 per cent since October 2021
Algoma Steel (TSX:ASTL) is shedding more light on the collapse of a utilities piping structure at its Sault Ste. Marie, Ontario, coke-making plant in the early morning hours of Saturday.
As previously reported, the collapse caused no injuries but did result in an oven gas main failure, which generated abnormal gas flaring and air emissions, as well as an undisclosed quantity of effluent polluting the adjacent waterway.
Algoma’s full leadership team was present at the site over the weekend to assess and address the damage, according to Soo Today.
The company now claims that “the water-related environmental release was fully contained by the evening of Jan. 20, with most of the effluent being contained on-site,” according to a news release that hit the wire earlier Tuesday, leading management to believe there is “low risk of impact to the adjacent waterway.”
The release goes on to describe how Algoma has had to curtail coke production at all but three units during repairs, a plan for which is underway, but believes it can source coke from third-party sources to boost inventory in the interim.
Management expects shipments to be impacted for up to two weeks because of issues with restarting blast furnace operations, which were suspended during the incident for safety reasons. The furnace is experiencing issues with “other utilities supplying the facility” as a consequence of the coke-making incident, as per the latest news release.
Plate/strip mill operations, cold mill operations and electric arc furnace construction were not affected by the incident.
Algoma Steel, based in Sault Ste. Marie, is a fully integrated producer of hot- and cold-rolled steel products including sheet and plate. It is Canada’s only producer of discrete plate products and one of the lowest-cost producers of hot-rolled sheet steel in North America.
Algoma Steel stock (TSX:ASTL) fell as much as 6.8 per cent in Monday trading once the market digested the news. The stock has rebounded by only 0.68 per cent trading at C$11.78 per share as of 9:52 am ET.
From a broader perspective, Algoma shareholders have been rewarded with an 18.39 per cent return year-over-year, but have lost 17.97 per cent since October 2021.
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