Stelco to close rod mill, to sell site's land, equipment

By Jeff Pines

Washington, July 21 - Stelco Inc. said it will close its rod mill in September and sell the equipment and land it sits on. The mill is a stand-alone facility near the steel company's Hamilton, Ont., works. It manufactures coiled wire rod products.

Tight competition in the rod marketplace is the reason for the closure.

"The rod marketplace has become extremely competitive with the entry of new, high-tech and low-cost mills," said Courtney Pratt, Stelco's president and chief executive officer, in a news release. "As a result of this competition and our own aging facility, our rod production has declined significantly, a trend that is expected to continue. By exiting this line of business now we can focus a restructured Stelco on those products for which there is increasing demand and in which we have a competitive advantage."

About 70% of the mill's production is shipped to Stelwire Ltd. and Stelfil Ltee., two Stelco subsidiaries. A search for an alternate supplier has already started, and the company said it does not expect any disruption in supply.

The mill employs 160 workers, a number of whom are eligible to retire.

Stelco filed for protection under Canada's Companies Creditors' Arrangement Act on Jan. 29.

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