Lakeside Steel granted intervenor status in Canada's lawsuit against US Steel

Canadian steel producer Lakeside Steel has been granted the “intervenor status” it requested from the Canadian government in regards to the government's case against US Steel. This move brings the Welland, Ontario-based firm one step closer to possibly acquiring the former Stelco assets from US Steel.

With this status, Lakeside hopes to bid on US Steel's Canadian assets if the Canadian government rules that US Steel must sell these assets. The status was granted at a federal court hearing in Toronto, Ontario held Monday.

The United Steelworkers Union (USW), which represents US Steel's Canadian workers, was also granted intervenor status on Monday. The union backs Lakeside's acquisition efforts. Lakeside's and the USW's status is limited to the final stage of the lawsuit, in which remedies are determined.

Canada is taking US Steel to court to force it to comply with commitments for production and employment that the company made under the Investment Canada Act when it acquired Stelco in 2007. US Steel idled most of its Canadian operations this spring in response to a drop in steel demand.

US Steel, which opposed Lakeside's application to intervene in the matter, said last week that it is restarting operations at its Hamilton, Ontario site and has recalled 800 workers. Its Nanticoke, Ontario plant remains closed.

Lakeside already owns the former Stelco's pipe and tube assets, which were purchased in 2005 following Stelco's bankruptcy filing.