Stelco Holdings Inc. is listed on the TSX under the symbol "STLC"
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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."
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.
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.