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
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
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
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
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
SOURCE Lakeside Steel Inc.
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