Oct 18 2004
Stelco Inc. announces that late this afternoon General Motors provided notice that it is proceeding with plans to obtain a source of supply other than Stelco for its 2005 requirements. In General Motor's letter regarding the 90 day notice of a potential work stoppage that was issued by USWA Local 8782, it cited the potential for interruption of supply during the term of the proposed 2005 supply contract as the reason for its decision.
Stelco also announced that it received notice late last night from DaimlerChrysler stating that it, too, would seek an alternate source of supply if Stelco cannot provide assurances regarding security of supply by the end of this month.
Courtney Pratt, Stelco President and Chief Executive Officer, said, "These are extremely significant blows to the Company. Our biggest customer is pulling its business and our second biggest customer will do the same thing if it doesn't receive the assurance it needs.
"These actions pose extremely grave consequences for the future of the Company and of the communities in which it operates.
"I hope that all parties, including our union Locals, will acknowledge the serious nature of these developments and will work with us on an urgent basis with the goal of preserving the business on which so many futures depend.
"Toward that end, the Company will pursue discussions with Local 8782 during this coming weekend in an effort to find a solution to today's developments."
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