MIDLOTHIAN, TX and TAMPA, FL, Aug. 31 /CNW/ - Chaparral Steel Company
(NASDAQ: CHAP) and Gerdau Ameristeel Corporation (NYSE: GNA, TSX: GNA) today
announced that they received this morning a letter dated August 29th, 2007
from the Committee on Foreign Investment in the United States ("CFIUS")
stating that CFIUS has reviewed the information provided by the companies in
connection with the Agreement and Plan of Merger signed by Chaparral, Gerdau
Ameristeel and certain other parties, and determined that there are no issues
of national security sufficient to warrant a second stage investigation under
the Exon-Florio Amendment to the Defense Product Act of 1950, as amended.
Accordingly, CFIUS has concluded its review of the proposed transaction. The
consummation of the merger remains subject to customary conditions, including
adoption of the Agreement and Plan of Merger by Chaparral's stockholders.
Certain statements contained in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future
results expressed or implied by such forward-looking statements. In addition
to those noted in the statements themselves, any number of factors could
affect actual results, including, without limitation, the highly competitive
nature of the global steel industry and the availability of competitive
substitute materials; the cyclical nature of the steel industry and the
industries served by Chaparral and Gerdau Ameristeel and economic conditions
in North America and worldwide steel imports and trade regulations; the
substantial capital investment and maintenance expenditures required in both
Chaparral's and Gerdau Ameristeel's respective businesses; unexpected
equipment failures, transportation disruptions or production curtailments or
shutdowns; increases in the cost of steel scrap, energy and other raw
materials; the ability to renegotiate collective bargaining agreements and
avoid labor disruptions; the cost of compliance with environmental laws and
regulations; costs relative to competitors who have sought bankruptcy
protection; the ability to fund pension plans; the deviation of actual results
from estimates made in the preparation of Chaparral's and Gerdau Ameristeel's
respective financial statements; the loss of key employees; the effects of the
consolidation of operations or of the steel industry, and the ability to
integrate newly-acquired businesses and achieve synergies.
Any forward-looking statements in this press release are based on current
information as of the date of this press release and neither Chaparral nor
Gerdau Ameristeel undertakes any obligation to update any forward-looking
statements to reflect new information or future developments or events, except
as required by law.
Chaparral Steel Company, headquartered in Midlothian, Texas, is the
second largest producer of structural steel beams in North America. Chaparral
is also a supplier of steel bar products. In addition, Chaparral is a leading
North American recycling company. Additional information may be found on
Chaparral's web site at www.chapusa.com.
For further information contact Cary D. Baetz at (972) 779-1032.
About Gerdau Ameristeel
Gerdau Ameristeel is the second largest mini-mill steel producer in North
America with annual manufacturing capacity of over 9.0 million tons of mill
finished steel products. Through its vertically integrated network of 17
mini-mills (including one 50% owned joint venture mini-mill), 17 scrap
recycling facilities and 52 downstream operations, Gerdau Ameristeel serves
customers throughout North America. The company's products are generally sold
to steel service centers, steel fabricators, or directly to original equipment
manufactures for use in a variety of industries, including construction,
cellular and electrical transmission, automotive, mining and equipment
manufacturing. The common shares of Gerdau Ameristeel are traded on the New
York Exchange and the Toronto Stock Exchange under the symbol GNA.
For further information, contact Barbara R. Smith at (813) 319-4324.
Additional Information and Where to Find It
In connection with the proposed transaction with Gerdau Ameristeel
Corporation, Chaparral filed a definitive proxy statement with the Securities
and Exchange Commission on Schedule 14A on August 10, 2007. INVESTORS AND
SECURITY HOLDERS ARE STRONGLY ADVISED TO READ THE PROXY STATEMENT, BECAUSE IT
CONTAINS IMPORTANT INFORMATION. Investors and security holders may obtain a
free copy of the proxy statement and other documents filed by Chaparral at the
Securities and Exchange Commission's Web site at http://www.sec.gov. The proxy
statement and such other documents may also be obtained free of charge by
directing such request to Chaparral Investor Relations, telephone (972)
779-1032 or on Chaparral's web site at www.chapusa.com.
Participants in the Solicitation
Chaparral and its directors, executive officers and certain other members
of its management and employees may be deemed to be participants in the
solicitation of proxies from its stockholders in connection with the proposed
transaction. Information regarding the interests of such directors and
executive officers and information concerning all of Chaparral's participants
in the solicitation are included in the proxy statement. The proxy statement
is available free of charge at the Securities and Exchange Commission's Web
Site at http://www.sec.gov and from Chaparral Investor Relations, telephone
(972) 779-1032 or on Chaparral's web site at www.chapusa.com.
For further information:
For further information: Cary D. Baetz at (972) 779-1032; Barbara R.
Smith at (813) 319-4324