LAKESIDE STEEL ADDS PROCESSING CAPABILITY IN WELLAND - NEW JOBS FOR WELLAND, ONTARIO OPERATIONS

WELLAND, ON, Feb. 25 /CNW/ - Lakeside Steel Inc. (TSXV: LS) ("Lakeside Steel" or the "Company") today announced it is adding additional thermal processing capabilities to the Welland, Ontario facility of its wholly-owned subsidiary, Lakeside Steel Corporation ("Lakeside").

"Thermal processing treatment such as product normalizing is a key constraint in this industry", said Ron Bedard, President and COO of Lakeside Steel. "This project will help Lakeside produce higher value-added product from our Welland facility."

Normalization processing involves the application of heat treatment to products in order to realign grain structure, enhance properties and strengthen the product. Lakeside has already begun refurbishing equipment to enable this value-added processing for its tubular products.

This refurbishment will create 12 new jobs at the Welland facility and will enable the modernized operation to ship fully end-finished and normalized tubing products to oil country customers in the United States and Canada.

"Processing capacity for OCTG products is in short supply across the continent and therefore normalized product is at a premium," Bedard added. "Bringing this function in-house will keep us competitive while maintaining quality and certainty of supply for our customers."

Currently, Lakeside ships its tubing products to an outside processor for upsetting and normalizing, before those products can be threaded, coupled and shipped to customers. The addition of the new processing capability, in conjunction with Lakeside's recently added upsetting and threading equipment, allow it to keep the entire operation in-house.

Once fully operational, the existing stretch reduction mill (SRM) and upset and thread line along with the new processing equipment will enable Welland to ship its fully normalized tubing directly to North American customers, thereby reducing freight costs associated with off-site processing.

Lakeside will test production to ensure it meets the American Petroleum Institute's (API) strict specifications.

Initially, the Welland operation will process 2.375" and 2.875" tubing, from its SRM. Later, the processing is expected to accommodate 4" and 5" casing from Lakeside's 2-8" Mill. Lakeside's SRM is one of only a handful of such mills in North America that can manufacture the high pressure products required for deep and directional drilling operations.

Mr. Bedard, President and COO commented, "This project is another example of Lakeside's commitment to our operations in Welland.  Our Welland facilities and employees will continue to play an important role in our corporate strategy." 

About Lakeside Steel Inc.

Lakeside Steel is a 2011 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation ("Lakeside").  Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside's list of customers includes large oil and gas end users as well as distributors across North America.

Lakeside Steel also indirectly wholly-owns Lakeside Steel Alabama which will be a diversified steel pipe manufacturer strategically situated in the southern United States on successful completion of the construction of the new facility in Thomasville, Alabama. Construction of the Alabama facility is currently underway.

This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Filing Statement of the Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Lakeside Steel was recognized as a TSX Venture 50® company in 2010 and 2011. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

SOURCE Lakeside Steel Inc.

For further information:

Ron Bedard
President and Chief Operating Officer
Lakeside Steel Inc.
FAX:  (905)735-9069
e-mail: ron.bedard@lakesidesteelcorp.ca
        Ken Hunter
Chief Financial Officer
Lakeside Steel Inc
FAX:  (905)735-9069
e-mail: ken.hunter@lakesidesteelcorp.ca

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