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HAMILTON, ON, June 27, 2019 /CNW/ - Stelco Holdings Inc.
("Stelco Holdings" or the "Company") (TSX: STLC) today announced
that its wholly-owned subsidiary, Stelco Inc. ("Stelco"), has,
after investing more than $30
million, commissioned a state-of-the-art batch annealing
facility and is starting shipment of fully processed, annealed
cold-rolled steel sheet. The restart of a modernized and upgraded
temper mill, along with installation of new annealing furnaces,
will allow Stelco to add a full range of up to 200,000 net tons of
fully processed cold-rolled steel to its product mix. With
completion of this project, Stelco will now be able to increase
service to markets that demand these high-quality products such as
the automotive, appliance and service centre markets, as well as
the pre-painted steel market for architectural applications. These
products have historically commanded higher prices than the
full-hard cold-rolled products previously offered by Stelco and
represent a continued expansion of product capabilities to enhance
tactical flexibility and meet the needs of our customers.
"This milestone marks another important step in Stelco's journey
as we continue to deliver on our business plan," stated
David Cheney, Chief Executive
Officer of Stelco Holdings. "Stelco's entry into the fully
processed, annealed cold-rolled market is being welcomed by our
valued customers across the marketplace and represents an important
addition to our value-added product mix. The ability to offer an
expanded suite of flat-rolled products to our customers will
further support our tactical flexibility model and allow Stelco to
pursue additional profitable markets."
"The continued investment in new technology and equipment is a
critical part of Stelco's strategy to increase production through
the optimization of our assets and grow the company in order to
maximize profitability and returns to our shareholders," continued
Cheney. "Today's announcement builds on previously announced
investments in artificial intelligence, electricity co-generation,
and logistics that will help Stelco remain a demonstrated leader in
the globally competitive steel industry."
About Stelco
Stelco is a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North
America. Stelco produces flat-rolled value-added steels,
including premium-quality coated, cold-rolled and hot-rolled steel
products. With first-rate gauge, crown, and shape control, as well
as reliable uniformity of mechanical properties, our steel products
are supplied to customers in the construction, automotive and
energy industries across Canada
and the United States as well as
to a variety of steel services centres, which are regional
distributers of steel products.
Forward-Looking Information
This release contains ''forward-looking information'' within the
meaning of applicable securities laws. Forward-looking information
may relate to our future outlook and anticipated events or results
and may include information regarding our financial position,
business strategy, growth strategy, budgets, operations, financial
results, plans and objectives of our Company. Particularly,
information regarding our expectations of future results,
performance, achievements, prospects or opportunities is
forward-looking information. In some cases, forward-looking
information can be identified by the use of forward-looking
terminology such as ''plans'', ''expects'' or ''does not expect'',
''is expected'', ''opportunity", ''budget'', ''estimates'',
''outlook'', ''projection'', ''prospects'', ''strategy'',
''anticipates'', ''does not anticipate'', "further support",
"remain", "offer", ''believes'', or variations of such words and
phrases or state that certain actions, events or results ''may'',
''could'', ''would'', ''might'', ''will'', or ''achieve''. In
addition, any statements that refer to expectations, intentions,
projections or other characterizations of future events or
circumstances may be forward looking statements. Forward-looking
statements are not historical facts but instead represent
management's expectations, estimates and projections regarding
future events or circumstances. The forward-looking statements
contained herein are presented for the purpose of assisting the
holders of our securities and financial analysts in understanding
our financial position and results of operations as at and for the
periods ended on the dates presented, as well as our financial
performance objectives, vision and strategic goals, and may not be
appropriate for other purposes.
Forward-looking information in this news release includes the
potential for Stelco to service new markets with the type of fully
processed annealed cold-rolled steel sheet that Stelco expects to
produce; Stelco's potential production of up to 200,000 net tons of
fully processed annealed cold-rolled steel sheet per year; and the
completion of the batch anneal facility allowing Stelco to pursue
additional markets, while supporting management's tactical
flexibility model. Undue reliance should not be placed on
forward-looking information. The forward-looking information in
this press release is based on our opinions, estimates and
assumptions in light of our experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors that we currently believe are appropriate and
reasonable in the circumstances. Despite a careful process to
prepare and review the forward-looking information, there can be no
assurance that the underlying opinions, estimates and assumptions
will prove to be correct. Certain assumptions in respect of our
ability to complete the transactions, as well as those set out in
this press release, are material factors made in preparing the
forward-looking information and management's expectations contained
in this press release.
Such forward-looking information is subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results or achievements to be materially different from
those expressed or implied by such forward-looking information,
including: Stelco's ability to offer an expanded suite of
flat-rolled steel products in a manner that compliments
current and future operations; Stelco's ability to find new markets
for its suite of flat-rolled steel products; Stelco's ability to
capitalize on the anticipated demand for such products; the
possibility that Stelco's newly completed batch anneal facility
does not meet anticipated capacity output; Stelco's ability
to arrive at mutually acceptable terms in respect of any future
transactions between Stelco and its various stakeholders, as well
as those described in the Company's annual information form and the
Company's management discussion and analysis for the period ended
December 31, 2018 available under the
Company's profile on SEDAR at www.sedar.com.
SOURCE Stelco