Stelco Inc. decides to close down Welland Pipes Ltd.

Stelco Inc. decides to close down Welland Pipes Ltd.

Canadian largest steel producer Stelco Inc. decides to permanently close its Welland Pipe Ltd. subsidiary. The plant located in Welland, Ontario produces large-diameter pipes. 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. The closure will cause 175 job losses at the mill. Company officials stated that the Welland Pipe operations have been idle since June due to lack of orders, and no near future orders were seen either. Therefore, with no viable business on hand, Welland Pipe Ltd. is destined for a permanent shut down as of end last week. 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.