WELLAND, ON, Jan. 12 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today announced it has increased production on its Stretch Reduction Mill by adding additional production shifts to meet stronger demand for Lakeside Steel's OCTG products. In addition, Lakeside Steel has recalled all of its temporarily laid off employees and has returned to full employment for the first time since November 2008. Based on current orders, the Company expects its Stretch Reduction Mill and ERW 2"-8" Mill to operate at or near capacity through April of 2010.
The increased demand for the Company's OCTG products has been driven both by the enhanced end finishing capabilities of Lakeside Steel's new upsetting and threading operations which became operational in December 2009, and also by the increase in prices for oil and natural gas. Favorable rulings in OCTG-related trade cases in Canada and the United States involving Chinese manufactured products have also positively impacted Canadian OCTG manufacturers.
The Company further announced that the first production runs of Lakeside's higher-grade P110 casing and tube products were recently shipped using the Company's newly installed rail yard.
Ron Bedard, Lakeside Steel's President and COO stated, "We are very pleased to be able to return to full employment at Lakeside Steel as we have one of the most skilled and dedicated workforces in the industry. Our upsetting and threading capabilities and our new rail yard have positioned the Company to take full advantage of the increased demand we are seeing in 2010. By adding additional shifts to our mills we will be able to shorten lead times, improve customer service and continue to realize operational efficiencies. Our focus is to continue this positive momentum through 2010."
About Lakeside Steel Inc.
Lakeside Steel is the parent company of Lakeside Steel Corp. ("Lakeside"). Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer. Lakeside's list of customers includes large oil and gas, mining, automotive and commercial and industrial supply companies. In addition to supplying its products in these industries, Lakeside manufactures pipe and mechanical tubing for the resale market, which is sold to distributors in Eastern Canada and the Northeastern United States. Lakeside manufactures a variety of products for these industries including oil well tubing and casing, mechanical tubing, pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside serves customers worldwide, either directly or indirectly, in Canada, Australia and the United States.
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SOURCE LAKESIDE STEEL INC.
For further information: For further information: Ron Bedard, President and Chief Operating Officer, Lakeside Steel Inc., (905) 735-7473 ext 7294, Fax: (905) 735-9069, e-mail: email@example.com; Ken Hunter, Chief Financial Officer, Lakeside Steel Inc., (905) 735-7473 ext 7218, Fax: (905) 735-9069, e-mail: firstname.lastname@example.org