Business
Stelco provides update on Lake Erie upgrade program
Stelco provides update on Lake Erie upgrade program.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 25 /CNW/ - Stelco Inc. (TSX:STE) today issued an\ninformation update on the Phase 2 upgrade of the Lake Erie hot strip mill.\nThis upgrade is one of the critical capital investment programs\nidentified in the Company's 4-point strategy announced in July 2004. It is\ndesigned to increase hot roll capacity, improve production quality, enable\nStelco to close its obsolete 56\" mill in Hamilton, and contribute to the\nCompany's financial performance by reducing costs.\nThe new equipment associated with the current stage of the upgrade has\nbeen installed, is operational, performing extremely well, and the Company is\nconfident that the upgrade's strategic objectives will be achieved.\nThe implementation of this stage of the upgrade process has taken longer\nthan anticipated, primarily as a result of the complex task of integrating the\nrelated control software as part of the commissioning process. Despite the\ndelays, it is still expected that this commissioning process will be completed\nby the end of the first quarter of 2006. The operation of the mill is\nimproving on a weekly basis and is currently operating at 80% of the\nanticipated production capacity that is expected to be achieved for this stage\nof the project.\nStelco noted that the installation and commissioning delays associated\nwith this stage of the upgrade program will have a short-term negative impact\non the facility's overall production, the volume and mix of products shipped,\nand the Company's revenue from sales. These items will impact the fourth\nquarter of 2005 and the first quarter of 2006.\n\nAbout Stelco\nStelco Inc. is a large, diversified steel producer. Stelco is involved in\nmajor segments of the steel industry through its integrated steel business,\nmini-mills and manufactured products businesses. This news release may contain\nforward-looking information with respect to the Corporation's business\noperations, financial performance and conditions. Actual results may differ\nfrom expected results for a variety of reasons including factors discussed in\nthe Corporation's Management's Discussion and Analysis section of the\nCorporation's 2004 Annual Report. To learn more about Stelco and its\nbusinesses, please refer to our Web site at www.stelco.ca.\n%SEDAR: 00001549E\n\n\n","length":2352,"tagName":"div"}]