Stelco Announces Selection of Strategic Co-Generation Partner
HAMILTON, ONTARIO, June 6, 2019 - Stelco Holdings Inc. (“Stelco Holdings” or the “Company”) (TSX: STLC) today announced that its wholly-owned subsidiary, Stelco Inc. (“Stelco”), has reached an agreement with DTE Energy Services, Inc. (“DTE”) as its exclusive development partner to pursue the further development of a strategic cogeneration project at Stelco’s Lake Erie facility in Nanticoke, Ontario. The partnership between Stelco and DTE represents an important next step towards the construction and commissioning of cogeneration capacity that will serve to reduce the Company’s costs by utilizing excess industrial gases and reducing exposure to peak electricity pricing. DTE has been engaged to conduct detailed design, engineering and development services to pursue the next phase of the cogeneration project.
“A key driver behind Stelco’s success is our ability to identify strategic investments to both grow the business and improve our overall cost structure,” stated David Cheney, Chief Executive Officer of Stelco Holdings. “This partnership with DTE and the pursuit of cogeneration electricity capacity is another opportunity for our Company to reduce our input costs and support the tactical flexibility model that has resulted in positive returns for our shareholders. We are excited about this opportunity and look forward to future developments on this project with our new partner.”
Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America. Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled steel products. With first-rate gauge, crown, and shape control, as well as reliable uniformity of mechanical properties, our steel products are supplied to customers in the construction, automotive and energy industries across Canada and the United States as well as to a variety of steel services centres, which are regional distributers of steel products.
This release contains ‘‘forward-looking information’’ within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, plans and objectives of our Company. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘is expected’’, ‘‘opportunity”, ‘‘budget’’, ‘‘estimates’’, ‘‘outlook’’, ‘‘projection’’, ‘‘prospects’’, ‘‘strategy’’, ‘‘anticipates’’, ‘‘does not anticipate’’, ‘‘believes’’, or variations of such words and phrases or state that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’, ‘‘will’’, or ‘‘achieve’’. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances may be forward looking statements. Forward-looking statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. The forward-looking statements contained herein are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision and strategic goals, and may not be appropriate for other purposes.
Forward-looking information in this news release includes potential development of the Lands and tactical flexibility resulting from the acquisition of the Lands and the Rights relating thereto. Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions in respect of our ability to complete the transactions, as well as those set out in this press release, are material factors made in preparing the forward-looking information and management's expectations contained in this press release.
Such forward-looking information is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results or achievements to be materially different from those expressed or implied by such forward-looking information, including: Stelco’s ability to develop the Lands in a manner that compliments current and future operations, Stelco’s ability to pursue other uses for the Lands, Stelco’s ability to capitalize on any demand for industrial lands in the GTHA, the possibility that demand for industrial lands in the GTHA does not increase or materially deteriorates from current levels, arriving at mutually acceptable terms in respect of any future transactions between Stelco and its various stakeholders, as well as those described in the Company’s annual information form and the Company’s management discussion and analysis for the period ended December 31, 2018 available under the Company’s profile on SEDAR at www.sedar.com.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release, and are subject to change after such date. Stelco Holdings disclaims any intention or obligation or undertaking to update publicly or revise any forward-looking statements, whether written or oral, whether as a result of new information, future events or otherwise, except as required by law.
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Don Newman Trevor Harris
Chief Financial Officer Vice-President, Corporate Affairs