As previously announced, Courtney Pratt (shown) has taken over the reins at Stelco Inc., Algoma Steel's biggest Canadian competitor, Stelco confirmed today.
"Competition from U.S.-based restructured steel mills has become a critical issue for Stelco," the company said in a news release issued tonight, adding that "reducing costs significantly is required to allow Stelco to remain viable."
The following is the full text of Stelco's announcement:
************************* Stelco Inc. - Courtney Pratt assumes duties
HAMILTON, ON, Jan. 2 - Stelco Inc. announced today that Mr. Courtney Pratt has assumed his responsibilities as President and Chief Executive Officer.
In November 2003, Mr. Pratt was appointed President and Chief Executive Officer effective January 1, 2004. Mr. Pratt commented on his new responsibilities: "Stelco's current circumstances provide a major challenge for me and our senior management team.
While many companies in the North American steel sector are experiencing appreciating share prices, reflecting improved pricing on a variety of steel products and higher sales volume from a general rebound in the manufacturing sector, Stelco continues to produce losses and consume considerable amounts of cash."
Commenting on the business review currently underway at Stelco, Mr. Pratt advised that the challenge is to redeploy Stelco's assets, improve productivity, and lower costs to restore the competitive capabilities of the Corporation. Competition from U.S.-based restructured steel mills has become a critical issue for Stelco.
Reducing costs significantly is required to allow Stelco to remain viable.
"We will be looking to our stakeholders to work cooperatively to achieve necessary cost reductions and undertake other measures to make Stelco competitive in the marketplace and to rebuild its operational and financial capability," added Mr. Pratt.
Stelco Inc. is Canada's largest and most diversified steel producer.
Stelco is involved in all major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.
Stelco has a presence in six Canadian provinces and two states of the United States.
Consolidated net sales in 2002 were $2.8 billion. 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 2002 Annual Report.
To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca.
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