Lakeside Steel Announces Services Agreement with Metals USA

WELLAND, ON, June 14, 2011 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today announced that it has entered into a four-year contract with a subsidiary of Metals USA Holding Corp. ("Metals USA") for the provision of steel slitting and warehousing services to support the Company's Thomasville, Alabama, facilities.

In connection with the agreement, Metals USA will construct, at its cost, a modern slitting and warehousing facility adjacent to Lakeside Steel's casing mill currently being constructed in Thomasville, Alabama. The close proximity of the new Metals USA facility to the Company's Thomasville mill and the related agreement with Lakeside Steel are expected to improve Lakeside Steel's material flow, working capital requirements, inventory control and will significantly reduce transportation costs.

Metals USA is a provider of processed carbon steel, stainless steel, aluminum, red metals and manufactured metal components. One of the largest metal service center businesses in North America and a leading provider of value-added metal processing and inventory management services, Metals USA Holding Corp, the organization's parent company, is publicly traded on the New York Stock Exchange under the symbol "MUSA".

The Company's President and Chief Operating Officer, Ron Bedard, commented: "We are very pleased to be partnering with Metals USA, a well-established and very successful company in the steel services industry. The construction of a state-of-the-art steel processing and warehousing facility next to our Alabama mill bodes well for the future of our Alabama operations and the City of Thomasville."

For additional information, please refer to the Metals USA press release dated June 14, 2011.

About Lakeside Steel Inc.

Lakeside Steel is a 2011 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation, Lakeside Steel Alabama Inc. and Lakeside Steel Texas Inc. Lakeside Steel has operating facilities located in Welland, Ontario, and Corpus Christi, Texas, and three facilities currently being constructed in Thomasville, Alabama. Lakeside Steel is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside Steel's list of customers includes large oil and gas end users as well as distributors across North America.

Lakeside Steel Alabama will be a diversified steel pipe manufacturer with end-finishing and heat treat capabilities strategically situated in the southern United States on successful completion of construction of the new facilities in Thomasville, Alabama. Construction of the Alabama facilities 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, Annual Information Form 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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Lakeside Steel Inc.

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