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Ontario government adds C$100 million support for Algoma

Steel ( ASTL )

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Algoma Steel ( ASTL ) hit hard by U.S. tariffs under Trump

administration

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Loan part of $10 billion aid to large companies against

tariffs

(Adds details, background from paragraphs 4-8)

OTTAWA, Sept 29 (Reuters) -

Canada's government is to provide C$400 million ($287.13

million) in financial support for Algoma Steel ( ASTL ) under

its large enterprise tariff relief scheme, Jobs Minister Patty

Hajdu said on Monday.

The company has been one of the large steel enterprises

worst hit by the 25% tariffs U.S. President Donald Trump slapped

on Canadian imported steel, a duty he later cranked up to 50%.

The loan will help Algoma Steel ( ASTL ), which employs around 2,500

people in Ontario, continue operations, transition to a business

model less reliant on the U.S., and limit disruption to its

workforce, the government said in a statement.

The government of Ontario will also provide C$100 million in

support, it said.

"In the face of tariffs and uncertainty around the world, we

are ensuring workers and businesses can prosper today, and lead

in tomorrow's economy," Hajdu said.

Canada's finance minister Francois-Philippe Champagne, whose

ministry will extend the financial aid through federal agencies,

said the support would help Algoma manage the impact of U.S.

tariffs.

"This investment is about helping them adapt operations,

stay competitive and... protect (jobs)," he said.

The loan is a part of a $10 billion financing facility

announced in March for large companies to help them fight the

tariffs and countermeasures. It complements a slew of other

tariff-related measures that the federal government has

announced for the Canadian steel industry.

($1 = 1.3931 Canadian dollars)