Essar Steel Algoma is appealing a Jan. 6 ruling by the Canadian International Trade Tribunal (CITT) that found steel imports have not caused injury to Canada’s domestic steel industry.
Essar said it believes the tribunal made “several fundamental errors of law” in asking the Federal Court of Appeal to reverse the tribunal’s decision.
“If the appeal is successful, dumping and countervailing duties will be imposed on imports of steel plate from India and Russia for an initial period of five years,” the company notes in a release.
“These duties could be applied retroactively to imports entering Canada as of January 6, 2016.”
Last December, the Canada Border Services Agency (CBSA) found imports from India and Russia had been dumped into Canada at margins as high as 98 per cent, the release notes.
The CBSA also found Indian imports had received significant government subsidization.
Essar Steel Algoma recently announced it was seeking a buyer for the Sault Ste. Marie steel plant. Last November, the company filed for bankruptcy protection under the Companies’ Creditor Arrangement Act and a similar filing in the U.S. under Chapter 15. Ernst & Young Inc. was appointed as the company’s monitor.
Essar has cited a trio of reasons for its low performance: poor steel markets, an influx of imported product, and the termination of its iron ore supply agreement with Cliffs Natural Resources.
The company had laid off 100 of its workers last October.
The Sault steel plant produces hot and cold rolled steel products, including sheet and plate. Founded in 1901 as Algoma Steel, the company was acquired in June 2007 by Essar Steel Holdings Ltd.
