The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article published in the September 1, 2004 edition

Sep. 1, 2004. 07:30 PM

Stelco to sell Montreal wire products mill Stelfil as part of restructuring

HAMILTON (CP) - Troubled steel giant Stelco Inc., which has been restructuring under court supervision, said Wednesday it has decided to pursue the sale of its subsidiary Stelfil Ltee., a Montreal-area wire producer.

Stelfil employs approximately 300 employees and had sales of approximately $61 million in 2003, Stelco said in a statement issued after markets closed Wednesday. A successfully restructured Stelco will focus on its core integrated steel business, producing high-quality products for value added markets including the automotive and other sectors, Courtney Pratt, Stelco's president and chief executive, said in a statement.

He added that Stelco has indicated it will sell or close other business units that don't fit in that long-term strategy.

We believe that Stelfil will benefit from new ownership that will treat it as a core business asset. It has a terrific workforce and an experienced senior management team, Pratt said.

The Hamilton-based company, one of Canada's two largest steel producers, also has outlined a process for the sale of Stelfil as well as Stelwire - a Hamilton-area wire maker - and Stelpipe, a pipe producer based in Welland, Ont., in a monitor's report filed Wednesday with Ontario Superior Court.

The monitor's report also disclosed that:

-Stelpipe recorded sales of approximately $149 million in 2003 and approximately $117 million through the first seven months of 2004.

-Stelwire recorded sales of approximately $125 million in 2003 and approximately $89 million through the first seven months of 2004.

-Stelfil recorded sales of approximately $61 million in 2003 and approximately $51 million through the first seven months of 2004.