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HAMILTON, ON, June 18, 2020 /CNW/ - Stelco Holdings Inc.
("Stelco Holdings" or the "Company") (TSX: STLC) today announced
that its wholly-owned subsidiary, Stelco Inc. ("Stelco"), has
entered into an agreement with DTE Energy Services, Inc. ("DTE")
for the development, construction and operation of a 65MW
cogeneration facility ("Cogen Plant") at Stelco's Lake Erie facility in Nanticoke, Ontario. DTE will fund the capital
costs associated with the construction of the Cogen Plant and
Stelco will pay DTE a fixed annual fee pursuant to an energy
services agreement for operating the Cogen Plant for a term of 20
years. Construction is expected to start in the Summer of 2020 with
the Cogen Plant expected to be operational in the first half of
2022. Once operational, the Cogen Plant is expected to reduce
Stelco's energy costs and further enhance the utilization of
Stelco's process-generated off gases.
"This arrangement with DTE is yet another example of Stelco's
commitment to improve our business efficiencies and reduce our cost
of electricity while at the same time improving our environmental
footprint by recycling energy-containing gasses," stated
Alan Kestenbaum, Executive Chairman
and Chief Executive Officer of Stelco Holdings. "We are excited
about this opportunity and look forward to working with DTE over
the months and years ahead to bring this project to
completion."
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 ''expects'' or ''does not expect'', ''is
expected'', "planned" 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 objectives, vision and
strategic goals, and may not be appropriate for other purposes.
Forward-looking information in this news release includes the
Company's expectations concerning the development, construction and
operation of the Cogen Plant and the timing thereof, expectations
that the Cogen Plant will deliver electricity to its design
capacity, expectations that the Cogen Plant will reduce Stelco's
energy costs and environmental footprint and further enhance its
utilization of process-generated gases.
The forward-looking information included in this press release
are 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, but not limited to, the
following material risks and assumptions: assumptions regarding the
current and future prices of electricity in the Province of
Ontario; the development and
construction of the Cogen Plant remaining unaffected by
uncontrollable external events, such as the global pandemic,
commonly referred to as "covid-19"; Stelco's ability to enter into
definitive agreements with certain vendors regarding the supply of
commodities and ancillary equipment necessary to operate the Cogen
Plant at its design capacity; Stelco's ability to obtain applicable
regulatory approvals required to develop, construct and operate the
Cogen Plant; pregarding Stelco's current and future production
levels at its Lake Erie facility;
and expectations regarding the actual cost of constructing the
Cogen Plant and the annual costs associated with maintaining the
Cogen Plant being within the range currently estimated by
management of the Company, as well as those risk factors described
in the Company's annual information form and the Company's
management discussion and analysis for the period ended
December 31, 2019 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 news 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