Business
Stelco Announces Transfer of Hot Strip Processing to Lake Erie Mill
Stelco Announces Transfer of Hot Strip Processing to Lake Erie Mill.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\nMill Achieves Record Production Following Successful Expansion\n\n\nHAMILTON, ON, April 5 /CNW/ - Stelco Inc. (TSX:STE) announced today the\ntransfer of all hot strip processing to its Lake Erie mill following that\nmill's successful capacity expansion completed during the fourth quarter of\n2006. The performance of the mill, which has been undergoing an extensive\n$270 million modernization project, has continued to improve, with record\nproduction of over 280,000 tons being achieved for March 2007. The substantial\ncompletion of the modernization program has increased the annual capacity of\nthe Lake Erie hot strip mill to 3.7 million tons from 3.0 million tons. Rodney\nMott, Stelco's President and Chief Executive Officer, remarked "The employees\nat Lake Erie Steel are commended for their success in both completing this\nextensive project and ramping up production at an accelerated rate".\n\n\nThe expanded Lake Erie Steel capacity will allow Stelco to take the next\nstep in its strategy to become a low cost producer by shutting down the 56"\nhot strip mill at its Hamilton Steel operations. The Hamilton hot strip mill,\nwhich has operated since the 1940's, has served the market well through the\nyears but has become a high cost operation with limited support from the\nmarketplace. The shifting of orders to the modernized Lake Erie hot strip mill\nis expected to improve Stelco's overall efficiency, improve product quality\nand lower operating costs.\n\n\nThe implementation of this initiative will reduce the work force at\nHamilton Steel by more than 300 positions. This will occur through the\nreduction and displacement of employees working directly at the Hamilton hot\nstrip mill, as well as the elimination of certain support services in\nmaintenance, shops, and coil processing. The company is planning to achieve\nthis reduction through a combination of retirements, layoffs and severance.\nMr. Mott stated "The Hamilton employees continue to work hard to improve\nproductivity and reduce costs, but it is impossible to be competitive with\nobsolete equipment. The decision to reduce rolling operations at Hamilton and\nto optimize Lake Erie is our best choice for ensuring Stelco's long term\nsuccess".\n\n\nAbout Stelco\n\n\nStelco is one of Canada's largest steel companies. It is focused on its\ntwo ...