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HAMILTON, ON, Jan. 28, 2021 /CNW/ - Stelco Holdings Inc.
("Stelco Holdings" or the "Company") (TSX: STLC) announces that its
wholly-owned subsidiary, Stelco Inc. ("Stelco"), successfully
commissioned the new pig iron caster at its Lake Erie Works
facility which has the capability of casting up to one million tons
of pig iron per year. The addition of the pig iron caster to
Stelco's operations further supports the Company's tactical
flexibility strategy and will allow the Company to fully capitalize
on increased capacity resulting from the recently completed blast
furnace upgrade project.
With the expansion of electric arc furnace ("EAF") production in
North America, the demand for iron
units is placing increased pressure on the existing supply of scrap
steel, making pig iron an increasingly highly valued commodity in
the production of EAF steel. Stelco's new pig iron caster enables
it to access this market and enhances its complete suite of
products ranging from pig iron, to semi-finished steel, to
hot-rolled sheet, to high value-added cold-rolled and coated
products, as well as advanced high strength steels. This
optionality will allow the Company to maximize production and
pursue markets that yield the highest rate of return for its
stakeholders.
"The commissioning of the pig iron caster completes the most
recent of our many strategic investments in Stelco since mid-2017,
that have modernized our facilities, diversified our product mix,
and positioned Stelco to succeed in various market cycles," stated
Alan Kestenbaum, Executive Chairman
and Chief Executive Officer of Stelco. "As markets continue to
recover from the global pandemic and with the majority of our
strategic investments now complete, including North America's first smart blast furnace, I
am excited about the opportunity for our business to capitalize on
our low-cost structure, tactical flexibility business model, and
diverse and full range of products to continue generating positive
returns for our shareholders."
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. In addition to being North America's only integrated producer of
pig iron, 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. For more information about Stelco,
please visit www.stelco.com.
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, acquisition opportunities,
budgets, operations, financial results, taxes, dividend policy,
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'', ''targets'', ''expects'' or ''does not expect'', ''is
expected'', ''an opportunity exists'', ''budget'', ''scheduled'',
''estimates'', ''outlook'', ''forecasts'', ''projection'',
''prospects'', ''strategy'', ''intends'', ''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'', ''will be taken'',
''occur'' or ''be achieved''. 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
expectations: that our pig iron caster will be capable of producing
up to one million net tons of pig iron per year; that our pig iron
caster will support our tactical flexibility model and that such
flexibility will allow us to pursue markets that yield a higher
rate of return; that our blast furnace will deliver increased
production relative to historical performance; that our pig iron
caster will allow us to fully capitalize on any increase in blast
furnace production; that our business will be able to gain entry
into the market for pig iron; that our strategic investments made
since 2017 will position us to succeed in various market cycles;
that our business will capitalize on our low-cost-structure,
tactical flexibility business model and diverse product mix; and
that our business will be able to generate positive returns for our
shareholders. 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 maximize blast furnace production; our ability to
maximize pig iron caster production; our ability to gain entry into
new product markets; our belief that the market demand for iron
units is increasing and will continue to do so; our a belief that
strategic investments made since 2017 will have the anticipated
effect on revenue and costs; our ability to source raw materials
and other inputs; our ability to supply to new customers and
markets; our ability to effectively manage costs; our ability to
attract and retain key personnel and skilled labour; our ability to
obtain and maintain existing financing on acceptable terms;
currency exchange and interest rates; the impact of competition;
changes in laws, rule, and regulations, including international
trade regulations; our ability to continue to access the U.S.
market without any adverse trade restrictions; upgrades to existing
facilities remaining on schedule and on budget and their
anticipated effect on revenue and costs; and growth in steel
markets and industry trends, 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.
SOURCE Stelco