News Release Archive
SYDNEY STEEL--MEXICAN FIRM FRONT-RUNNER FOR OWNERSHIP
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Grupo Acerero Del Norte of Mexico is the front-runner for the
private ownership of Sydney Steel, Economic Development and
Tourism Minister Manning MacDonald announced today.
"Our consultant's review of proposals shows that the Mexican
company is the best bet for turning Sysco into a successful,
privately-run steel company," said Mr. MacDonald.
The minister made the announcement after an initial discussion of
proposals with the United Steelworkers of America.
"We sat down and shared our findings with union representatives,"
said the minister. "Our initial screening shows that the Mexicans
are the strongest of the three companies interested in Sydney
Steel. Our discussion with the union reaffirmed that fact."
In early July, the province received proposals from three
companies interested in purchasing the steel plant-Grupo Acerero
Del Norte of Mexico, Global Steel Holdings Inc. of Canada and
Stavan-Transmet of Russia.
The key criteria for the initial screening centred around a
company's ability to resolve Sysco's present quality control
issues, the potential for turning around the money-losing
operation, and the potential for future market development.
More detailed discussions with the union are slated for the
coming weeks. The province will also meet with Minmetals of China
to discuss its relationship with Sydney Steel. Negotiations with
Grupo Acerero Del Norte would follow.
The minister indicated that he would work to move the process
along in a timely manner.
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Contact: Manning MacDonald
Minister of Economic Development and Tourism
902-539-6032 or 902-424-5790
ngr August 6, 1997 - 12:20 pm
