Expressing confidence in its transition to electric-arc steel production, Algoma Steel announced today that it will close its #7 coke battery this summer.
Around Sault Ste. Marie's largest employer, coke (with a small 'c') is neither a soft drink nor a recreational drug.
Made by heating coal or petroleum in the absence of air, coke is a refined porous, carbon-rich material used to manufacture steel.
Coke makes blast furnaces hotter.
When burned, it also reduces oxides in iron ore, leaving behind pure iron.
A coke battery is a series of coke ovens stacked in rows. Coal is loaded into the ovens and processed into coke.
But in a massive transformation, Algoma Steel is switching to electric arc furnace (EAF) steelmaking, which no longer requires blast furnaces or coke.
"Our start-up plan continues to include normal production from our existing steelmaking facility, while ramping up production from our electric arc furnaces throughout 2025 and 2026 followed by a complete transition to EAF production," chief executive officer Michael Garcia said during a phone conference today with institutional investors.
"As a significant milestone in this transition, we plan to shut down #7 coke battery at our coke-making facility later this summer," Garcia said.
"#7 battery is our least efficient battery and we do not expect its shutdown to result in any increase to operating cost. This action reflects our confidence that our EAF transition plan remains firmly on track."
"Steel markets have had periods of great volatility in the past, and during those times we do what we always do: stay focused on the things within our control and never taking our eye off the ball as we prepare to take a tremendous step forward for our company and community," Garcia said.
Garcia expressed optimism about Mark Carney's win this week in the federal election.
"We are optimistic that the newly elected Canadian government will work constructively with industries like ours to advance timely solutions that strengthen both our company, the community and support the nation's broader economic goals.
"With trade relationships evolving, we believe it is critical that the government immediately engage with the United States to address the Section 232 tariffs currently in place, and to support fair and balanced trade between both countries.
"We are encouraged by the federal government's renewed focus on domestic military procurement and infrastructure spending, which we believe will support future demand for our plate products."
As SooToday reported last night, the Sault steelmaker has missed its April target for commencing steel production at the first of its two electric arc furnaces.
That start-up is now rescheduled to some time during the company's second quarter, which concludes at the end of June.
"We had higher-than-expected snow events. We had colder-than-expected seasonal temperatures, which affected our ability to commission some of the critical systems, especially the water treatment plant," Garcia said.
"You can't really commission a water treatment plant when you have sustained temperatures below zero."
"We're executing the plan every day as aggressively as possible, but there's always things that could cause you to slip a day or a week at a time. So really, what's happened is we slipped from the first quarter of 2025 into the second quarter."
Today, Garcia was asked when production will start on the second EAF.
"The second furnace will be at the end of the year. We're focusing on the first furnace right now. A lot of the major work for the second furnace has already been in place.
"I imagine the team is going to learn a lot about the final sequence of startup events and what needs to happen in order to strike that first arc. So we'll certainly apply all of that learning to the second furnace. But right now the second furnace is showing the end of 2025."