HAMILTON, ON, Dec. 1 /CNW/ - Stelco Inc. (TSX:STE) today announced that
it has entered into a definitive agreement for the sale of the assets of
AltaSteel Ltd. to Scaw Metals Group ("Scaw"), one of Africa's largest
diversified iron, steel and engineering works, subject to Court approval.
The transaction is subject to a number of conditions, including obtaining
the required regulatory and lenders' consent. It is anticipated that, if all
conditions are satisfied as planned, the sale will close early in 2006.
The pursuit of the sale of AltaSteel, as in the case of Stelco's other
non-core subsidiaries, reflects Stelco's previously announced decision to
focus on its integrated steel business going forward. That approach was
outlined in the four-point strategy announced in July 2004.
Scaw has indicated its intention to continue operating AltaSteel in its
current lines of business and in its current location near Edmonton, Alberta.
Scaw has also indicated that it looks forward to building upon the strong
business platform that AltaSteel has established, while making focused capital
investments to provide for increasing demand in the growing Alberta economy.
Courtney Pratt, Stelco President and Chief Executive Officer, said, "This
marks an important step in our pursuit of a transaction that will be good for
AltaSteel, for its employees and retirees, and for Stelco. A successfully
completed transaction will provide AltaSteel with ownership that views it as a
strategic asset. It will provide employees and retirees with greater
certainty. And it will assist Stelco in focusing on its integrated steel
business."
About Stelco
Stelco Inc. is a large, diversified steel producer. Stelco is involved in
major segments of the steel industry through its integrated steel business,
mini-mills, and manufactured products businesses. This news release may
contain forward-looking information with respect to the Corporation's business
operations, financial performance and conditions. Actual results may differ
from expected results for a variety of reasons including factors discussed in
the Corporation's Management's Discussion and Analysis section of the
Corporation's 2004 Annual Report. To learn more about Stelco and its
businesses, please refer to our Web site at www.stelco.ca.
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