HAMILTON, Ontario, July 30 /CNW/ -- U. S. Steel Canada Inc., a wholly
owned subsidiary of United States Steel Corporation (NYSE: X), announced today
that it has signed a letter of intent with Nelson Steel, a division of Samuel
Manu-Tech Inc., under which U. S. Steel Canada will acquire three pickle lines
in Nanticoke, Ontario, adjacent to U. S. Steel Canada's Lake Erie Works. Terms
of the letter of intent were not disclosed. The acquisition is subject to
regulatory approvals and customary closing conditions and is expected to close
in the third quarter of 2008.
U. S. Steel Canada expects the acquisition of the 1.2 million metric tons
of pickling capacity from Nelson Steel to strengthen its position as a premier
supplier of flat-rolled steel products to the North American market. Pickling
is the process of cleaning hot-rolled steel coils before they are shipped to
customers or further processed into higher value-added steels.
"Today, U. S. Steel Canada took an important step in strengthening our
commitment to value-added, coated products produced at Hamilton Works by
signing the letter of intent to acquire three pickle lines from Nelson Steel,"
said U. S. Steel Canada President and General Manager Douglas R. Matthews.
"These assets give U. S. Steel Canada the modern equipment necessary to
produce high-quality products that will be in demand well into the future. In
addition, the proximity of these pickle lines to our operations will help to
ensure the future competitiveness of both Lake Erie Works and Hamilton Works."
Consummation of the acquisition and the anticipated benefits are both
forward looking statements. The acquisition is subject to regulatory approvals
and other conditions. The achievement of the cost and quality improvement
expectations will depend upon many factors, some of which are beyond the
control of United States Steel Corporation. In accordance with "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995, cautionary
statements identifying important factors, but not necessarily all factors,
that could cause actual results to differ materially from those set forth in
the forward-looking statements have been included in the Form 10-K of U. S.
Steel for the year ended December 31, 2007, and in subsequent filings for U.
S. Steel with the United States Securities and Exchange Commission.
For more information about U. S. Steel Canada, visit www.usscanada.ca.
For further information:
For further information: Trevor Harris of U. S. Steel Canada Inc.,
+1-905-577-4447 Web Site: http://www.usscanada.ca