CSN Statement Regarding the Wheeling-Pittsburgh Board of Directors Election
November 17 2006 - 6:16PM
PR Newswire (US)
SAO PAOLO, Brazil, Nov. 17 /PRNewswire-FirstCall/ -- Marcos Lutz,
Vice President of Energy and Infrastructure for CSN said, "While
CSN considers its proposal to be the best choice for ensuring the
long term success of the Wheeling Pittsburgh shareholders,
employees and community, it appears that the shareholders have
chosen that a new Board of Directors should determine the outcome.
We expect that the new Board will be evaluating on a timely basis
its obligations under the Merger Agreement and determining its
future course. "We continue to pursue our strategy of leveraging
CSN's core strengths to create growth in key markets including
North America and Europe. CSN has modern facilities, an integrated
value-added supply chain, and a profit oriented culture that allow
us to maintain impressive cash generation throughout the business
cycles. In the North American market, our Heartland asset is an
excellent base from which we intend to continue building. While we
remain open to potential continued discussions with
Wheeling-Pittsburgh, we are actively pursuing our other
alternatives. No matter the outcome, we hope Wheeling-Pittsburgh
and its shareholders are able to determine the course that
positions the Company for future growth and achieves the best
value, and we wish the best to its high quality employees." About
Companhia Siderurgica Nacional CSN is a leading global steel
producer with operations in Latin America, North America, and
Europe. CSN is a fully integrated steel producer, the largest
coated steel producer in Brazil, with current capacity of 21.5
million tons of iron ore, 5.6 million tons of crude steel, 5.1
million tons of rolled products and 2.9 million tons of coated
steel capacity. CSN's process is based on the integrated steelworks
concept that uses its own sources of iron ore and electrical power
supply. In addition, CSN controls logistics assets -- ports and
railways -- that enable an extremely cost efficient and reliable
loading and unloading of slabs and ore for deep sea vessels. This
integrated steelworks concept allows CSN to be one of the most cost
competitive steel producers in the world. CSN has had operations in
the United States since 2001 through its wholly-owned subsidiary
CSN LLC (formerly known as Heartland Steel) located at Terre Haute,
Indiana. CSN LLC has an annual production capacity of 1 million
tons of cold-rolled, galvanized and hot rolled products. CSN shares
are traded on the New York (NYSE) and Sao Paulo (BOVESPA) stock
exchanges. Contact Information: Investors: Jose Marcos Treiger,
Investors Relations Manager, +55-11-3049-7511 Media (U.S.): Jeremy
Fielding or Laura Walters, Kekst and Company, +1-212-521-4800
Forward-Looking Statements Cautionary Language The information
contained in this news release and the investor presentation, other
than historical information, consists of forward-looking statements
within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act. In particular, statements
containing estimates or projections of future operating or
financial performance are not historical facts, and only represent
a belief based on various assumptions, all of which are inherently
uncertain. Forward-looking statements reflect the current views of
management and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from those
described in such statements. These risks and uncertainties
include, among others, factors relating to (1) the risk that the
businesses of CSN Holdings Corp. and Wheeling-Pittsburgh will not
be integrated successfully or such integration may be more
difficult, time-consuming or costly than expected; (2) the ability
of CSN, CSN Holdings Corp. and Wheeling-Pittsburgh to realize the
expected benefits from the proposed strategic alliance, including
expected operating efficiencies, synergies, cost savings and
increased productivity, and the timing of realization of any such
expected benefits; (3) lower than expected operating results for
Wheeling-Pittsburgh for the remainder of 2006 or for the strategic
alliance; (4) the risk of unexpected consequences resulting from
the strategic alliance; (5) the risk of labor disputes, including
as a result of the proposed strategic alliance or the failure to
reach a satisfactory collective bargaining with the production
employees; (6) the ability of the strategic alliance to operate
successfully within a highly cyclical industry; (7) the extent and
timing of the entry of additional competition in the markets in
which the strategic alliance will operate; (8) the risk of
decreasing prices for the strategic alliance's products; (9) the
risk of significant supply shortages and increases in the cost of
raw materials, especially carbon slab supply, and the impact of
rising natural gas prices; (10) rising worldwide transportation
costs due to historically high and volatile oil prices; (11) the
ability of the strategic alliance to complete, and the cost and
timing of, capital improvement projects, including upgrade and
expansion of Wheeling-Pittsburgh's hot strip mill and construction
of an additional galvanizing line; (12) increased competition from
substitute materials, such as aluminum; (13) changes in
environmental and other laws and regulations to which the strategic
alliance are subject; (14) adverse changes in interest rates and
other financial market conditions; (15) failure of the convertible
financing proposed to be provided by CSN to be converted to equity;
(16) changes in United States trade policy and governmental actions
with respect to imports, particularly with respect to restrictions
or tariffs on the importation of carbons slabs; and (17) political,
legal and economic conditions and developments in the United States
and in foreign countries in which the strategic alliance will
operate. There is no guarantee that the expected events, trends or
results will actually occur. The statements are based on many
assumptions and factors, and any changes in such assumptions or
factors could cause actual results to differ materially from
current expectations. CSN, CSN Holdings Corp. and
Wheeling-Pittsburgh assume no duty to update forward-looking
statements. Reference is made to a more complete discussion of
forward-looking statements and applicable risks contained in CSN's
and Wheeling-Pittsburgh's filings with the SEC. DATASOURCE:
Companhia Siderurgica Nacional CONTACT: Investors: Jose Marcos
Treiger, Investors Relations Manager, CSN, +55-11-3049-7511; Media
(U.S.): Jeremy Fielding or Laura Walters, both of Kekst and
Company, +1-212-521-4800, for CSN
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