Steel Mills

Stelco Sells and Leases Back Hamilton Land for $518M CAD

Written by Laura Miller

June 1, 2022

Integrated Canadian flat-rolled steelmaker Stelco Inc. has concluded a sale-leaseback transaction of the land on which it runs its operations in Hamilton, Ontario.

stelcoStelco, which is also based in Hamilton, is receiving Canadian $518 million ($409 million USD) from Slate Asset Management for the 800-acre parcel of land.

Additionally, the steelmaker will lease back certain portions of the land from Slate so as to continue its Hamiton Works cokemaking, cold-rolling, galvanizing and other finishing operations. The lease extends for 35 years, with renewal options for five additional 20-year terms. Once the lease expires, Stelco will be required to vacate the premises and demolish the remaining structures.

“This is a great transaction for Stelco and its shareholders, and introduces a strong and experienced developer in Slate to further develop and grow our home city of Hamilton. We look forward to continuing to operate in the community that we have called home for over 100 years as it enjoys new growth opportunities,” commented Stelco Executive Chairman and CEO Alan Kestenbaum in a statement.

By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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