SAULT STE. MARIE, ON, Dec. 16, 2013 /CNW/ - Essar Steel Algoma Inc.
announced today the Ontario government has passed a regulation
providing funding relief for the Company's defined benefit pension
plans. The new regulation allows for fixed payments over the next
three years and extends the amortization period, through to 2024. The
regulation is deemed effective as of December 1, 2013.
Historically low interest rates have led many of Ontario's
defined-benefit pension plans, both public and private, to seek relief
measures. Despite ongoing payments to the plans, Essar Steel Algoma's
pension contribution requirements have more than doubled year over
year, escalating to levels that were not sustainable. This led Essar
to pursue an alternative pension funding model.
Essar Steel Algoma CEO Kalyan Ghosh commented, "This new funding formula
provides Essar Steel Algoma with greater predictability in the near
term and more manageable payments over the long term. We truly
appreciate the support of all of the plan members, including our
employees, retirees and the union; without them this solution would not
have been possible."
Essar Steel Algoma is grateful for the continued hard work of the
Honourable David Orazietti, MPP Sault Ste. Marie, who ensured the
success of this important relief measure. He worked tirelessly
alongside the Honourable Finance Minister Charles Sousa and the Ontario
Government to put in place a comprehensive plan to aid the Company in
satisfying its pension obligations over the long term.
David Orazietti, Sault Ste. Marie MPP remarked on the announcement, "I
am pleased that our government has been able to accommodate this
important pension relief request made by Essar Steel Algoma. Essar is a
vital part of our community and region and this step will help them
work toward long-term sustainability."
More about Essar Steel Algoma Inc.
Essar Steel Algoma Inc. is a subsidiary of Essar Steel, a global
integrated steel producer with an annual capacity of 14 million tonnes.
Based in Sault Ste. Marie, Ontario, Essar Steel Algoma is a
manufacturer of flat rolled steel products, including hot and cold
rolled sheet and plate.
SOURCE: Essar Steel Algoma Inc.
For further information:
Manager Corporate Communications
Director Investor Relations
Phone : +1.705.945.2467
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