Essar Global completes acquisition of Algoma Steel

Essar Global announced June 21 that it completed the acquisition of Algoma Steel Inc. through its wholly owned subsidiary, Essar Steel Holdings Limited.

Essar has acquired the company at a valuation of Canadian $1.85 billion. Following this, Algoma Steel becomes a part of Essar Global. Denis Turcotte will continue as chief executive officer of Algoma Steel.

Shashi Ruia, chairman of Essar Global, said, "We are delighted to welcome Algoma to the Essar family. Algoma is the keystone of our expansion into the North American markets. We look forward to working with Algoma's impressive team to take forward our vision of world-class, low-cost steel assets, with a global footprint. In addition, there are plenty of synergies available between our two operations."

"As part of the Essar group, we will be able to exploit new growth opportunities and implement the best technological and engineering practices from across both organizations. This is a win-win situation for all Algoma stakeholders. Our customers, employees and community can look forward to investment that will reposition the company as a North American leader in steel," added Turcotte.

Algoma brings a whole new dimension to Essar Steel's marketing operations in North America and Algoma will now have access to Essar's range of value-added products in the automobile, white goods, construction and engineering industries. The enlarged business will concentrate on further reducing costs of production, widening the product range and developing new applications.

Essar Global is an international conglomerate operating in six business areas – steel, energy, power, communications, shipping & logistics and construction. It has offices worldwide and employs approximately 20,000 people, including more than 3,500 persons in the United States.

Essar Steel Holdings Limited (ESHL) is a global producer of steel with a footprint covering India, Canada, United States of America, Middle East and Asia. It is a fully integrated flat carbon steel manufacturer – from iron ore to ready to market products. ESHL has a current capacity of 8 million tons. With its expansion plans in India and other parts of Asia and North America, its capacity will go up to 20 to 25 million tons by 2012. Its products find wide acceptance in highly discerning consumer sectors, such as automotive, white goods, construction, engineering and shipbuilding.

Algoma Steel Inc. is an integrated steel producer based in Sault Ste. Marie, Ontario, with steel shipments of 2.4 million tons in 2006. Revenues, which totaled Canadian $1.9 billion in 2006, are derived primarily from the manufacture and sale of rolled steel products including hot- and cold-rolled steel and plates.