Hamilton, Ontario-based Stelco Inc. announced Thursday the transfer of all hot strip processing to its Lake Erie mill following the mill's capacity expansion completed in late 2006.
The company says that as a result of the $270 million modernization project, production has already improved to a record 280,000 net tons for March 2007, with the annual capacity of the Lake Erie hot strip mill increased to 3.7 million net tons from 3.0 million net tons.
After the remaining hot strip operations are transferred to the Lake Erie mill, the company will shut down the 56” hot strip mill at its Hamilton Steel operations, reducing the work force at Hamilton Steel by over 300 positions. Stelco CEO Rodney Mott told press that the Hamilton plant will not shut down entirely, but that the company will assess aging equipment and certain product lines in order to ensure that it remains competitive.
Mr. Mott stated, "The Hamilton employees continue to work hard to improve productivity and reduce costs, but it is impossible to be competitive with obsolete equipment. The decision to reduce rolling operations at Hamilton and to optimize Lake Erie is our best choice for ensuring Stelco's long term success".
Stelco is among Canada's largest steel companies, with production focused at its two Ontario-based integrated steel businesses in Hamilton and Nanticoke. These operations produce value-added hot rolled, cold rolled, coated sheet and bar products.