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HAMILTON, ON, Sept. 14, 2020 /CNW/ - Stelco Holdings Inc.
("Stelco Holdings") (TSX: STLC), a low cost, integrated and
independent steelmaker with one of the newest and most
technologically advanced integrated steelmaking facilities in
North America and the 100% owner
of the operating company Stelco Inc. ("Stelco", "Stelco Inc.", or
"the Company"), today provided further details on its Lake Erie
Works blast furnace upgrade and reline project.
Stelco continues to proceed with its comprehensive blast furnace
upgrade and reline project at its Lake Erie Works facility in
Nanticoke, Ontario, creating what
we believe will be the first smart blast furnace of its kind in
North America. The upgrade project
is currently on-budget and on-schedule, with hot metal production
expected early in October 2020. The
blast furnace upgrade and reline project is the first one in the
history of Lake Erie Works and will enable Stelco to efficiently
operate its technologically advanced blast furnace for the next
three to four decades. It is expected that these upgrades will
result in improved quality, increased hot metal production of up to
300,000 net tons per annum, and a corresponding $30 per net ton reduction in costs to produce our
steel coils.
"We are pleased with the extremely hard work of our employees
and contractors on this once in a generation project that we have
undertaken in the middle of the global pandemic to create a
best-in-class blast furnace at our Lake Erie Works facility,"
commented Alan Kestenbaum, Executive
Chairman and Chief Executive Officer of Stelco Holdings.
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, acquisition opportunities,
budgets, operations, financial results, taxes, dividend policy,
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'', ''targets'', ''expects'' or ''does not expect'', ''is
expected'', ''an opportunity exists'', ''budget'', ''scheduled'',
''estimates'', ''outlook'', ''forecasts'', ''projection'',
''prospects'', ''strategy'', ''intends'', ''anticipates'', ''does
not anticipate'', ''believes'', or variations of such words and
phrases or state that certain actions, events or results ''may'',
''could'', ''would'', ''might'', ''will'', ''will be taken'',
''occur'' or ''be achieved''. 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 our
expectations that: we will improve our cost position following the
completion of the blast furnace reline and upgrade project;
expectations that the blast furnace upgrade and reline project will
be completed by early October 2020;
that the Company will be well positioned to participate in any
economic recovery following completion of the blast furnace
project; that the blast furnace upgrade and reline project remains
on schedule and on budget; expectations that upon completion of the
blast furnace reline and upgrade project the Company will benefit
from upgrades intended to lower our cost structure and increase our
steelmaking capacity and enhance our product quality; and
expectations that the Company's strategic initiatives will position
the Company for long-term success. 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 our
capital projects on schedule and within budget and their
anticipated effect on revenue and costs; our ability to source raw
materials and other inputs; our ability to supply to new customers
and markets; our ability to effectively manage costs; our ability
to attract and retain key personnel and skilled labour; our ability
to obtain and maintain existing financing on acceptable terms;
currency exchange and interest rates; the impact of competition;
changes in laws, rule, and regulations, including international
trade regulations; our ability to continue to access the U.S.
market without any adverse trade restrictions; the impact of the
COVID-19 pandemic on the Company and on the North American and
global economies generally; upgrades to existing facilities
remaining on schedule and on budget and their anticipated effect on
revenue and costs; and growth in steel markets and industry trends,
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.
Key Assumptions and Risks Underlying the Blast Furnace
Project
Statements with respect to the expected increased production
volumes and anticipated cost reductions regarding the planned
upgrade and reline of our blast furnace at Lake Erie Works
referenced in this press release are based on a number of
assumptions, including, but not limited to, the following material
assumptions: third party contractors and suppliers delivering,
constructing and performing in accordance with agreed upon budgets,
schedules and applicable performance guarantees; our ability to
obtain any applicable regulatory approvals and permits required in
connection with the project; expectations that, upon completion,
our facilities will produce in accordance with anticipated design
capacity; expectations that the market for steel does not
experience a material adverse change in the short to medium term;
expectations that our customers will continue to purchase material
volumes of production upon completion of the project; the blast
furnace project proceeding on schedule and, upon completion,
performing in such a manner so as to provide molten metal to meet
our production needs; and expectations that we will fully realize
production levels at our Lake Erie Works facility that are equal to
or better than production levels existing at our Lake Erie Works
facility prior to the commencement of the blast furnace upgrade and
reline project. In addition, the effect that the COVID-19 pandemic
may have on the Company's ability to complete the proposed blast
furnace project is highly unpredictable and is subject to many
variables, including, but not limited to, the possibility that the
applicable contractors may be impeded and/or restricted from
completing the work on schedule and within budget.
Such forward-looking information is subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking information, including: North American and global
steel overcapacity; imports and trade remedies; competition from
other producers, imports or alternative materials; and the
availability and cost of inputs placing downward pressure on steel
prices or increasing our costs; as well as those described in the
Company's annual information form dated February 18, 2020 and the Company's MD&A for
the period ended June 30, 2020
available under the Company's profile on SEDAR at
www.sedar.com.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents our expectations as of the date of this news release and
are subject to change after such date. Stelco Holdings disclaims
any intention or obligation or undertaking to update publicly or
revise any forward-looking statements, whether written or oral,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Stelco