Steel Mills

US Steel Canada Assets to be Put on Auction Block
Written by Sandy Williams
September 25, 2014
US Steel Hamilton Works will be put up for sale within two months according to court filings by US Steel Canada’s President and General Manager Michael McQuade. Lake Erie Works is expected to be placed for sale by March 15, 2015.
A statement by US Steel Canada Director, Government and Public affairs follows:
“From the outset of the restructuring process, U. S. Steel Canada has been clear that all possible solutions would be explored. To speculate on the outcome of the process at this time would be premature. Our goal remains to implement a comprehensive operational and financial restructuring plan.
“It should be noted that while US Steel Canada is commencing a process for Hamilton Works, a similar process for the Lake Erie Works facility is scheduled to commence no later than March 2015. Furthermore, the deadline for the closing of any sale, refinancing or investment transactions for both processes is not until October 31, 2015. This time frame will provide US Steel Canada with insight and flexibility regarding its choice of restructuring options.”
“Consistent with the entire CCAA process, all of these processes and decisions are subject to the oversight of the Court Monitor and the ongoing direction of the Court.”
The DIP (debtor-in possession) Term sheet requires USSC to comply with a timetable that include milestones related to a sales and investment solicitation process (SISP) for Hamilton Works, Lake Erie Works, a claims process, and a plan of arrangement. Any sale, refinancing or investment transaction is expected to close no later than October 31, 2015. The restructuring process as a whole is expected to take until December 31, 2015 to complete.
In the affidavit, McQuade lists enumerates the problems that exist at Hamilton and says, “As a result of these and other factors, I am of the view that the commencement of a SISP in respect to the assets and business of Hamilton Works is an important and sensible step to take early in these proceedings.”
McQuade said that USSC will begin with the sale of Hamilton because USW Local 1005 “very clearly communicated its strong desire not to participate in any such [restructuring] discussions.” He added that statements from the union’s September 18, 2014 press conference indicate that Local 1005 “continues to be of that view.”
On the question of pensions, McQuade states in the affidavit that, “It is USSC’s present intention to, among other things, continue to pay all employee wages and benefits and other post-employment retirement benefits and to make all required pension and retirement plan contributions.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.

August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.

TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.

Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.

ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.