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HAMILTON, ON, May 8, 2019 /CNW/ - Stelco Holdings Inc.
("Stelco Holdings" or the "Company") (TSX: STLC) today announced
that its wholly-owned subsidiary, Stelco Inc. ("Stelco"), has
completed the acquisition of the remaining ~37 acres of land, which
includes buildings of approximately 500,000 SF of industrial space
and 100,000 SF of office space (the "Remaining Lands") located
adjacent to Stelco's Hamilton Works operations, which is currently
comprised of approximately 760 acres of property purchased by
Stelco in June 2018. The Remaining
Lands were purchased from Legacy Lands Limited Partnership for
an aggregate purchase price of $20
million and completes the return to Stelco of control over
all of the Hamilton Works lands (the "Lands") previously held by it
prior to the commencement of the CCAA proceedings.
The acquisition of the Remaining Lands provides a
necessary contiguous footprint for our Hamilton property that
will provide Stelco with the flexibility to develop
the Lands in a manner that both complements its current
and future operations and pursue other uses for the
Lands. Stelco has recently started to generate returns from
its existing surplus land, and the acquisition of the Remaining
Lands will afford greater opportunity to capitalize on growing
demand for industrial lands in the Greater Toronto Hamilton Area
("GTHA"). This acquisition further supports Stelco's mandate
for growth through the utilization of our tactical flexibility
model while we remain focused on manufacturing the high quality
steels required by our growing customer base.
Stelco continues to receive the benefit of the environmental
release in respect of the Lands that was granted by the Ministry of
the Environment, Conservation and Parks on closing of the CCAA
reorganization.
"Since our initial acquisition of lands in both Hamilton and Nanticoke almost one year ago, we have worked
diligently to unlock their value and generate significant value for
our shareholders," stated Alan
Kestenbaum, Executive Chairman of Stelco Holdings "We have
put in place a team to specifically pursue these opportunities and
capitalize on the very strong demand that exists for industrial
lands in the GTHA. We will continue to engage with the City of Hamilton and other parties to deliver
future strategic development of these lands. Acquiring these Lands
enhances the value of the entire property and facilitates
development and value creation opportunities for Stelco."
About Stelco
Stelco is a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North
America. Stelco produces flat-rolled value-added steels,
including premium-quality coated, cold-rolled and hot-rolled steel
products. With first-rate gauge, crown, and shape control, as well
as reliable uniformity of mechanical properties, our steel products
are supplied to customers in the construction, automotive and
energy industries across Canada
and the United States as well as
to a variety of steel services centres, which are regional
distributers of steel products.
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, budgets, operations, financial
results, 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'', ''expects'' or ''does not expect'',
''is expected'', ''opportunity", ''budget'', ''estimates'',
''outlook'', ''projection'', ''prospects'', ''strategy'',
''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'', or ''achieve''. 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
potential development of the Lands and tactical flexibility
resulting from the acquisition of the Lands and the Rights relating
thereto. 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
the transactions, 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.
Such forward-looking information is subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results or achievements to be materially different from
those expressed or implied by such forward-looking information,
including: Stelco's ability to develop the Lands in a manner that
compliments current and future operations, Stelco's ability to
pursue other uses for the Lands, Stelco's ability to capitalize on
any demand for industrial lands in the GTHA, the possibility that
demand for industrial lands in the GTHA does not increase or
materially deteriorates from current levels, arriving at mutually
acceptable terms in respect of any future transactions between
Stelco and its various stakeholders, as well as those described in
the Company's annual information form and the Company's management
discussion and analysis for the period ended December 31, 2018 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