Ocean Navigator, Ocean Voyager to be sold as American Queen exits lakes market
In what it called a strategic decision to refocus its business, American Queen Voyages, part of Hornblower Group, has announced a series of deployment changes and updates set to start in early 2024 and extend into 2025.
The company also confirmed it would sell the Ocean Navigator and Ocean Voyager and will not return to the Great Lakes in 2024.
“Our primary commitment is to deliver a best-in-class cruise vacation with a focus on immersive culinary and destination experiences,” said Cindy D’Aoust, president of American Queen Voyages.
“Our customers consistently tell us our U.S. River itineraries are exceptional and demonstrate this by returning again and again,” she continued.
“All of our focus is being put into updating and enhancing our popular river product with strategic partnerships and an elevated culinary program, which we know have been very well received,” added D’Aoust.
Algoma Steel’s electric arc furnace project well underway
Building permits to date value $150 million and the project has infused $47.7 million into the community as of the end of last year, said Michael Garcia, CEO of Algoma Steel. Updated figures will be presented later this week when quarterly results are announced.
The melt shop building, 165 feet tall and 1024 feet wide, is well underway and will be 25,000 square feet, becoming “the newest landmark” on Sault Ste. Marie’s skyline.
A Fume Treatment Plant is also underway and is one of three environmental controls that will be part of the project. A water treatment plant and special engineered furnace enclosures will also be included to reduce sound, sparks or dust particles, he told council.
It’s expected that by mid 2024 a commission ramp up will occur, creating a hybrid mode of steelmaking, Garcia said.
At some time after 2026, the full electric arc furnace making processes will be operational, resulting in the phase out of the blast furnace.
The transition will take several years to complete, arcing one furnace at a time with about 30 per cent hot metal charge from the No. 7 Blast Furnace, which will operate at reduced output.
The second phase will see both electric arc furnaces operational with 100 per cent cold charge, including obsolete and prime scrap with an option for addition of alternate iron units. It will be fully powered by the Ontario grid and onsite power generation will not be required.
Algoma Steel, with its 2,800 employees, says the new processes will eliminate some jobs – but the exact number is not yet known.
What is known, is that job number reduction will occur over several years from the time of the initial start up of the electric arc furnace through to the end of the process, as far away as 2029.
In the meantime, Garcia says the company has notified potential employees of job losses and is working them to reintegrate them into the company, some through apprenticeship programs.
“A fair number of apprentices we have is coming from our own employee base,” he told media following his presentation to city council. “That includes current employees, who in the future, may be impacted by the electric arc furnace transformation and they’re transitioning to an apprentice so they can qualify as a tradesperson in the company at the end of that program.”
Garcia said there is also some retraining money available from higher levels of government and talks are ongoing with the unions to help mitigate the impact of employees through the transition.
The move means that Algoma Steel will be the first integrated steel producer in North America transitioned to electric arc steelmaking, creating a competitive platform for growth.
It also means reducing greenhouse gas emissions by up to 70 per cent, the largest targeted emission reduction project in Canada right now, Garcia said.
When paired with Ontario’s low-carbon power grid, the project will make Algoma Steel the leading producer of green steel in Canada and among the top suppliers in North America.
Garcia said so far, the budget is on time, and on budget, as of the end of 2022.
The steelmaker is now in the final stage of its $135 million plate mill modernization project, increasing capacity and delivering a better product.
The latest fiscal update will be provided after markets close on Wednesday and a presentation will be made Thursday.
Garcia said so far, the budget is on time, and on budget.
With high inflation rates, Algoma Steel said steel prices were steadily raising from November 2022 until about four weeks ago, when the price of hot rolled coil began to move down moderately, he told reporters after the formal presentation.
“The pricing is still significantly higher than it was in October or November of last year when it kind of reached the bottom. Before that it reached a peak in March of last year, when the Russian invasion of Ukraine happened,” he said.
Garcia said he doesn’t have a crystal ball and can’t predict where the pricing will go, but said the company needs to keep control of the things it can, including productivity and cost control and ensure its pricing is successful during the different market cycles.
With an uncertain future ahead of her, Ocean Navigator heads upbound for the Soo in the St. Marys River. Roger LeLievre image (St. Marys River – June 20)
