Stelco completes Stelpipe asset sale

By Caroline Salls

Pittsburgh, Nov. 3 - Stelco Inc. said it completed the sale of the assets of Stelpipe Ltd. on Monday, according to a company news release.

On Aug. 19, the company announced that it had entered into a definitive agreement for the sale of substantially all of the assets of Stelpipe to Romspen Investment Corp. That agreement was subsequently assigned to Lakeside Steel Corp., a wholly owned subsidiary of Romspen.

The Ontario Superior Court of Justice approved the transaction on Sept. 6.

As a result of the transaction, Lakeside has assumed all of Stelpipe's obligations to its active employees retained by Lakeside, and Stelco will assume all of Stelpipe's retiree pension and benefit obligations.

In addition, Lakeside entered into a steel supply agreement with Stelco.

Also on Monday, the court ordered that some commercially sensitive information contained in the sale agreement continue to be sealed for a further period and that the steel supply agreement be sealed permanently or until further order of the court.

Accordingly, further details of the transaction were not disclosed at this time.

The sale reflects Stelco's plans to focus on its core integrated steel business.

On Wedensday, Stelco announced that it has signed a letter of intent concerning the sale of non-core assets Norambar Inc., Stelfil Ltée and Stelwire Ltd. to Mittal Canada Inc., a subsidiary of Mittal Steel Co. NV, also as a part of Stelco's initiative to focus on its core integrated steel business, as outlined in the four-point strategy announced in July 2004.

Stelco, a Hamilton, Ont.-based steel company, filed for bankruptcy under the Companies Creditors' Arrangement Act on Jan. 29, 2004.

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