Tenaris subsidiary buys Algoma Steel's mill

Tenaris subsidiary buys Algoma Steel’s mill

Algoma Steel Inc. is an integrated steel producer located in Sault Ste. Marie, Canada which derives revenues from manufacture and sale of rolled steel products including hot and cold rolled sheet and plate. The company has signed a letter of intent with Algoma Tubes, Inc., a Canadian subsidiary of Tenaris SA depending on the sale of tube manufacturing facilities which is currently leased to Algoma Tubes. After completion of the details and ratification, the sale of Algoma seamless tube mill which costs C$12.5 million is going to complete at the end of 2003. The mill's sale helps Algoma to decrease its liabilities and improve liquidity. Furthermore, Algoma is expected to realize the surplus assets to total $15 million in 2003.