Algoma Steel stock price rises as defense joint venture launches

LootboxPhobia · 2026-04-07T19:55:24+00:00

Algoma Steel Group and Roshel Inc. have established a joint venture, Roshel Algoma Defence Solutions Inc., to promote the production of Canadian ballistic steel, support defense procurement and the local supply chain, and are expected to create over 500 jobs, aligning with the Canadian government's strategy to increase defense investments.

LootboxPhobia

2026-04-07 19:55:24

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Investing.com – Algoma Steel Group Inc. (NASDAQ:ASTL; TSX:ASTL) shares rose 4.9% on Tuesday after the company announced that it would form a joint venture with Roshel Inc. to establish a center of excellence for the production of ballistic steel in Canada.

The joint venture, named Roshel Algoma Defence Solutions Inc., will provide sovereign ballistic steel defense solutions with end-to-end capabilities, including metal fabrication, forming, welding, and machining in Canada. The joint venture is intended to support Canadian defense procurement, including light multi-purpose vehicles, the domestic Arctic mobility enhancement initiative, ships, submarines, and broader defense needs.

The cooperation comes as the Canadian government increases defense investment and aligns with the priorities of the new Defense Industry Strategy, which emphasizes strengthening sovereign industrial capabilities and the “Buy Canadian” policy. The joint venture will also support the application of ballistic steel in infrastructure, maritime, aerospace, and security platforms, while creating export opportunities for allied partners.

Algoma Steel CEO Rajat Marwah said the partnership will directly put the company’s production capacity, workforce, and Sault Ste. Marie facilities to work serving Canada’s national security. Roshel CEO Roman Shimonov noted that Canada’s light multi-purpose vehicle procurement is expected to provide the Canadian Armed Forces with thousands of vehicles, representing a cornerstone opportunity for the partnership, delivering a fully domestic solution using Canadian ballistic steel produced in Ontario.

The joint venture is expected to support more than 500 workers, including new manufacturing jobs, aimed at strengthening Canada’s skilled industrial workforce, while consolidating domestic supply chains, including support for the automotive manufacturing supply chain for Ford Motor Company and Oakville’s F-Series production.

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