The city has made a name for itself in steel-making, and Essar Steel Algoma (formerly Algoma Steel) is the largest single employer with 3500 employees at the main plant and approximately 553 (440 unionized and 113 non-unionized) at an adjacent tube mill operated byTenaris. During the 1940s, the steel and chromium operations were of substantial importance to the war effort in Canada and the United States. Algoma Steel and the Chromium Mining and Smelting Corporation were key producers for transportation and military machines. The Huron Central Railway is important to the operation of the steel operation, but Genesee and Wyoming, Inc., owner of the railway, has announced its intention to discontinue operations, but has continued to operate under an agreement which terminates on August 15, 2010.
Sault Ste. Marie prospered during the 1960s and 70s, but as imported steel began to compete with domestic production, the local industry began to contract. Since the late 1980s, Algoma Steel (Currently Essar Steel Algoma), has declared bankruptcy twice and laid off large numbers of workers. Most recently, Algoma (Essar) was bailed out by the Ontario government with interest-free loans.
The company experienced a swift turnaround in 2004 from its earlier financial troubles of the 1990s. China's increased demand for steel of the past decade has increased the price of steel. Denis Turcotte, CEO, was named Canadian CEO of the year in 2006 for his efforts. An offer to purchase ASI by the Essar Group (India) had been recommended by the ASI Board of Directors and was approved. The company was officially sold to the Essar Group in June 2007 for $1.6 billion. Essar Steel Algoma is currently the most profitable steel company per unit on a global scale.
Forestry is also a major local industry, especially at St. Mary's Paper which has been reopened as of June 2007 under new ownership. Also related to wood products is Flake board Ltd., which employs over 110 people in
