Stelco Inc. announced today that it's immediately closing its Welland Pipe operation, which has not operated since June 30, 2002.
175 employees will be laid off.
The following is a news release from the company:
***************************************************************** Stelco Inc.'s Welland Pipe Ltd. closure
HAMILTON, ON, March 7 - Stelco Inc. announced today the permanent closure of its Welland Pipe Ltd. subsidiary, which will result in the loss of approximately 175 jobs at the large-diameter pipe mills located in Welland, Ontario.
Stelco Inc. will take an approximate $5 million after-tax charge ($0.05 per common share) in Quarter 1, 2003 as a result of this closure.
J. C. Alfano, President and Chief Executive Officer, stated, "Welland Pipe served Stelco and its large-diameter pipe customers very well over many years and we greatly appreciate the contribution from all current and past employees.
"Unfortunately, Welland Pipe's operations have been idle since June 30, 2002, due to a lack of orders and we do not foresee any near-term order prospects which would make the business viable.
"As a result, the plant will be closed effective this date." Stelco will continue to have a significant investment and commitment to the North American large-diameter pipe market through its joint venture ownership of Camrose Pipe Company, located in Camrose, Alberta.
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 2001 Annual Report.
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