Gerdau Ameristeel Reaches Idling Agreement with the USW at the Company's Sand Springs Mill



    TAMPA, FL, Aug. 28 /CNW/ - Gerdau Ameristeel Corporation (NYSE:   GNA; TSX:
GNA) announced today that it has reached agreement with the United Steel
Workers (USW) regarding the suspension of production at the Company's steel
mill located in Sand Springs, Oklahoma. Members of USW Local 2741 voted to
accept the terms and conditions of the agreement on August 27, 2009. In
connection with this action, the Company expects to incur an accounting charge
within the range it announced on August 6, 2009.
    An orderly wind-down of production at the mill is anticipated over the
next several weeks. The company is working with local, state and federal
agencies to offer assistance to impacted employees through this transition
period. Impacted employees will have the choice of extended recall rights or
severance as outlined in the collective bargaining agreement. Service to
Gerdau Ameristeel customers will be uninterrupted and will be provided by the
company's extensive network of mills in North America.
    On June 8, 2009 the company announced that it would enter into
discussions with the USW regarding the potential closure of the mill. The
company continues to investigate alternatives for modernization of the Sand
Springs Mill and the resumption of production to meet future market demand.
Discussions with State and local government officials regarding potential
economic incentives are ongoing. It is estimated that even if an agreement is
reached regarding these economic incentives, the mill will be idled for at
least 24 months while required capital improvements are completed.

    Forward-Looking Statements

    In this press release, "Gerdau Ameristeel" and "company" refer to Gerdau
Ameristeel Corporation and its subsidiaries and 50%-owned joint ventures.
Certain statements in this press release may constitute forward-looking
statements. Such statements can often be identified by the words
"anticipates," "believes," "estimates," "expects," "intends," "plans," and
other words and terms of similar meaning, which are predictions of or indicate
future events, trends or prospects and which do not relate to historical
matters. Forward-looking statements in this press release include statements
about the charges associated with the idling of production at the company's
Sand Springs mill, service to its customers, and the wind-down of operations
at the mill. The company cautions readers that forward-looking statements
involve risks and uncertainties that could cause actual results to differ
materially from those currently projected by the company. In addition to those
noted in the statements themselves, any number of factors could affect actual
results, including, without limitation:
    Excess global steel industry capacity and the availability of competitive
substitute materials; the cyclical nature of the steel industry and the
industries served by the company and economic conditions in North America and
worldwide; increases in the cost of steel scrap, energy and other raw
materials; steel imports and trade regulations; a change in China's
steelmaking capacity or slowdown in China's steel consumption; the company's
participation in the consolidation of the steel industry; the substantial
capital investment and similar expenditures required in the company's
business; unexpected equipment failures and plant interruptions or outages;
the company's level of indebtedness; the cost of compliance with environmental
and occupational health and safety laws; the enactment of laws intended to
reduce greenhouse gases and other air emissions; the company's ability to fund
its pension plans; the ability to renegotiate collective bargaining agreements
and avoid labor disruptions; currency exchange rate fluctuations; actions or
potential actions taken by the company's principal stockholder, Gerdau S.A.,
the liquidity of the company's long-term investments, including investments in
auction rate securities, and the company's reliance on its 50%-owned joint
ventures that it does not control.
    Any forward-looking statements in this press release are based on current
information as of the date of this press release and the company does not
undertake any obligation to update any forward-looking statements to reflect
new information, future developments or events, except as required by law.

    About Gerdau Ameristeel

    Gerdau Ameristeel is the second largest mini-mill steel producer in North
America, with annual manufacturing capacity of approximately 12 million tons
of mill finished steel products. Through its vertically integrated network of
mini-mills, scrap recycling facilities, and downstream operations, Gerdau
Ameristeel serves customers throughout the United States and Canada. The
Company's products are generally sold to steel service centers, steel
fabricators, or directly to original equipment manufacturers ("OEMs") for use
in a variety of industries, including non-residential, infrastructure,
commercial, industrial and residential construction, metal building,
manufacturing, automotive, mining, cellular and electrical transmission and
equipment manufacturing. Gerdau Ameristeel's majority shareholder is the
Gerdau Group, a 100+ year old steel company, the leading company in the
production of long steel in the Americas and one of the major specialty long
steel suppliers in the world. Gerdau Ameristeel's common shares are traded on
the New York Stock Exchange and the Toronto Stock Exchange under the ticker
symbol GNA.




For further information:

For further information: Investor Relations Contact: Barbara Smith, Vice
President and Chief Financial Officer, Phone: (813) 319-4324, Email:
basmith@gerdauameristeel.com; Media Contact: Philip K. Bell, Director,
External Communications and Public Affairs, (813) 207-2315,
pbell@gerdauameristeel.com

Organization Profile

GERDAU AMERISTEEL CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890