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Algoma Steel Inc.'s New Plate Heat Treat Furnace

23 December 1998

Algoma Steel Inc.'s New Plate Heat Treat Furnace

    SAULT STE. MARIE, ONTARIO--Dec. 22, 1998-- Algoma Steel Inc.(TSE:ALG.) In December 1997, the expansion of Algoma Steel Inc.'s Plate Heat Treat Facility was approved by Algoma's Board of Directors. This 12.5 million dollar facility was originally scheduled for completion in Quarter 2, 1999. Algoma Steel Inc. announces that the first production plates exited the new number 2 Heat Treat Furnace on December 16, 1998 - well ahead of the scheduled completion and start-up time.
    The expansion to the existing Heat Treat Facility gives Algoma the annual capacity to produce 140,000 tons of normalized, quenched and tempered and armour plate, an increase of 50 percent.
    This investment reflects Algoma's commitment to the plate business. The expansion of the Plate Heat Treat Facility is due, in part, to the excellent acceptance of Algoma's heat treated plate in the marketplace where end users have recognized the superior attributes of these heat treated products.
    The timely completion of this project was due to the dedication, commitment and teamwork of all those involved, including Algoma employees and suppliers of equipment and services to the project.
    Production trials continue with anticipated full production by December 31, 1998.
    Algoma Steel, based in Sault Ste. Marie, Ontario, is Canada's third largest integrated steel producer. Revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet, plate, seamless tubular products and structural products.