Lakeside Steel wants to buy U.S. Steel Canada

Lakeside Steel Inc. revealed Wednesday it is interested in buying US Steel Canada Inc., the former Stelco.

Based in Welland, Ont., Lakeside made the statement as it sought intervener status in the federal government's court action against US Steel Canada.

In mid-July, Industry Minister Tony Clement went to federal court to force US Steel to live up to certain promises it made when it bought Stelco Inc. in 2007 for about $1 billion.

Clement asked the company on May 5 to justify production cutbacks announced earlier this year. In July, he claimed US Steel was not complying with its undertakings, and he was not satisfied by its explanations.

Lakeside said that Clement claimed in his court application that US Steel pledged to produce an average of 4.3 million tons annually over a three-year span, and to employ an average of 3,105 employees.

Clement's application apparently seeks a daily penalty of $10,000 for the breach of each commitment.

Lakeside said it wants intervener status in the case so it can make the court aware of the impact of US Steel Canada's shutdown on the Canadian industry. Lakeside is a customer of US Steel Canada, and it wants the court to order the sale of the company.

"The minister's approach is appropriate in requiring foreign investors, who invest capital subject to commitments, to meet those commitments or face the available remedies," said Vic Alboini, the chairman and chief executive officer of Lakeside.

"The Lakeside alternative being proposed to the court would repatriate a former Canadian icon and resume operations immediately at the Hamilton and Nanticoke facilities. We believe this is a viable business solution to address the difficult reality at US Steel Canada."