Biggest construction project in Sault’s history is now underway
SAULT STE. MARIE, ON – Algoma Steel Inc. has already spent more than $100 million on a two-year, game-changing technology upgrade that local building officials say will be the most expensive construction job in Sault Ste. Marie’s history.
The massive project, expected to cost $703 million, will replace Algoma’s existing blast furnace and basic oxygen steelmaking processes with two new electric arc furnaces (EAFs), allowing 3.7 million tons in annual raw steel production with an estimated 70% reduction in annual carbon dioxide emissions.
Michael Garcia, the steelmaker’s president and chief executive officer, says the job is on schedule and on budget. Foundation work is currently underway, Garcia says, and structural steel for new buildings should start to rise in late September or in October.
Algoma’s conversion to electric-arc steelmaking could end up costing more than the budgeted $703 million. Chief financial officer Rajat Marwah told investors during a conference call last week that an $80-million contingency fund has been assigned to the project and a small amount of that has already been committed. “We will see a large part of the spending coming in the coming two quarters, up to December,” Marwah said.
Detailed engineering work on the EAF project won’t be completed until later this year, he added. CEO Garcia mentioned during the same investor presentation that foundation and pilings work is currently underway.
“We expect to start erecting buildings — or things above the level of the ground — on October, late September.”
The project will also include a new water treatment plant.
Northern Ontario Business
Reserve now for MHSD’s Detroit River cruise on September 10
Join other members of the MHSD aboard the passenger vessel Diamond Queen, (captained by MHSD’s very own Mike Nicholls and with MHSD member Ken Borg as narrator) for a Detroit River cruise 1-4 p.m. Saturday, September 10. We will do our best to get up close to freighter traffic and, if conditions are favorable, go up the Rouge River (however, the Rouge is not guaranteed). Snacks and refreshments will be available on the boat.
Tickets are $28 ($30 at the dock if space is still available). Buy tickets online at BrownPaperTickets.com (put Marine Historical Society in the search box to find our event).
By mail, send a check, payable to the Marine Historical Society of Detroit, to MHSD Cruise, 1020 Iroquois St., Detroit, MI 48214. Late orders will not be mailed – they will be held for you at the dock. We are limiting the number to 100 passengers so there will be plenty of room to move about the boat.
MHSD
