Lakeside Steel Inc. announced plans to build a new manufacturing facility in Thomasville, Ala. Once fully operational, the new facility is expected to add 192,000 tons of capacity, approximately doubling the company’s total production capacity and creating sufficient new capacity on OCTG casing products to satisfy the growing demand Lakeside has from its American customers, the majority of whom are located in the southern U.S. The total cost of the expansion project is estimated to be $40 million, comprised of $22 million for plant and equipment and $18 million for inventory and working capital. The facility will create up to 120 new jobs in Thomasville.
Thomasville, Ala., was chosen because of its proximity to both raw material suppliers and customers. Mill equipment, a substantial part of the total project cost, is being sourced from Freedom Machinery Company Inc. in Toledo, Ohio. Lakeside expects to start construction on the Thomasville expansion project in the fall 2010 and plans to be producing pipe for the OCTG and line pipe market by December 2011.
In addition to this major expansion project, Lakeside continues to invest in its existing facility in Welland, Ontario. The company has invested $9.5 million in capital improvements over the past three years and is committed to spending $6 million during 2011.