Six days after announcing a second-quarter loss of $82 million, Algoma Steel's biggest Canadian competitor tonight announced the departure, effective immediately, of its president and chief executive officer.
At 6:23 p.m., Stelco Inc. announced that Jim Alfano (shown) has retired and been replaced on an interim basis by Fred Telmer, chair of the Stelco board.
Stelco's board said tonight that it has already started a search for a new CEO to replace Alfano.
Algoma Steel Inc., meanwhile, is to release its second-quarter results on Wednesday.
The following is the full text of the announcement made by Stelco Inc.
**************************************************************** Retirement of Stelco Chief Executive Officer
TORONTO, July 28 - Stelco Inc. announced today that Mr. Jim Alfano, President and Chief Executive Officer, has decided to retire.
Mr. Fred Telmer, Chairman of Stelco Inc.'s Board of Directors, stated that "Jim Alfano's leadership, determination and dedication over his 30-year career and particularly during the past seven years as the Company's President and CEO made a very significant contribution to the Corporation."
To accommodate Mr. Alfano's request for an immediate departure to pursue other interests the Board of Directors announces the appointment of Mr. F.H. Telmer as President and Chief Executive Officer.
Mr. Telmer will serve on an interim basis heading a transition team which will assume the duties and responsibilities of Mr. Alfano.
The Board of Directors announced that the search for a new Chief Executive Officer to replace Mr. Alfano is underway.
The Board also appointed Mr. Richard Drouin as Chairman of the Board, relieving Mr. Telmer of his responsibilities as Chairman of the Board to enable him to focus on executive transition.
Mr. Telmer is well-known in Stelco circles having served as Chief Executive Officer from 1991 to 1997. Mr. Telmer noted that Stelco will focus its attention around a revitalization and restructuring plan to further strengthen the business against cyclical risks. 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.
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