Another chapter was added to the continuing tale of consolidation of the north American Steel industry with Slater Steel and some its subsidiaries filing for creditor protection under Canadian and US bankruptcy laws. This will allow them to develop a plan for restructuring and to address debt and capital and cost structures.
The decision to take this approach was despite their best efforts to restructure the business and focus its efforts as a specialty steel producer. Factors influencing the decision included the general economic downturn, the rising costs of natural gas and electricity in Ontario and higher costs of scrap steel and nickel, ingredients of steel.
Slater Steel have said that their operations would not be affected by the bankruptcy/restructuring filings, and that plants would continue to operate as normal.
Slater Steel subsidiaries included in the filing are: Atlas Stainless Steels; Atlas Specialty Steels; Fort Wayne Specialty Alloys; Hamilton Specialty Bar; Sorel Forge and Slater Lemont.
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