The company halts coal-based steelmaking, targeting $0 in capacity utilization charges by Q4 2026 to achieve breakeven adjusted EBITDA.
Algoma Steel Group Inc. (ASTL) has permanently closed its blast furnace operations, ending 125 years of coal-based integrated steelmaking. The transition to electric arc furnaces aims to eliminate $90M in capacity utilization charges by Q4 2026, targeting breakeven adjusted EBITDA.
The move follows strategic restructuring to align with industry shifts toward sustainable production. Prior operations relied heavily on coal, with capacity charges pressuring profitability. The company expects the new electric arc furnace model to improve cost efficiency.
Management confirmed the shift during its Q1 2026 earnings call, emphasizing long-term operational sustainability. No immediate market reaction was disclosed.