United States Steel Corp. and Stelco Inc. have entered into a definitive agreement pursuant to which U.S. Steel will acquire Stelco for approximately $1.1 billion. U.S. Steel expects the acquisition to strengthen its position as a premier supplier of flat-rolled steel products to the North America market. Stelco’s Lake Erie Works is one of the most modern integrated steel plants in North America. After the acquisition, which is expected to close before the end of 2007, U.S. Steel will have annual raw steel capability of approximately 33 million net tons.
Slabs produced at Stelco’s Lake Erie and Hamilton Works will help U.S. Steel expand its semi-finished supply chain capabilities to support finishing facilities for both flat-rolled and tubular products. Stelco also owns several joint-venture interests, including iron ore operations in the United States and Canada and a 60% interest in Z-Line, a hot-dip automotive-quality galvanizing line.