Stelco agrees to sell AltaSteel unit

By Caroline Salls

Pittsburgh, Dec. 1 - Stelco Inc. has entered into a definitive agreement for the sale of the assets of AltaSteel Ltd. to Scaw Metals Group, according to a company news release.

The transaction is subject to a number of conditions, including approval by the Ontario Superior Court of Justice and obtaining the required regulatory and lenders' consent.

The sale is expected to close in early 2006.

The proposed sale of AltaSteel is part of Stelco's decision to focus on its integrated steel business going forward.

The release said Scaw has indicated its intention to continue operating AltaSteel in its current lines of business and in its current location near Edmonton, Alberta.

"This marks an important step in our pursuit of a transaction that will be good for AltaSteel, for its employees and retirees, and for Stelco," Stelco president and chief executive officer Courtney Pratt said in the release.

"A successfully completed transaction will provide AltaSteel with ownership that views it as a strategic asset. It will provide employees and retirees with greater certainty. And it will assist Stelco in focusing on its integrated steel business."

Stelco, a Hamilton, Ont.-based steel company, filed for bankruptcy under the Companies Creditors' Arrangement Act on Jan. 29, 2004.

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