Company will spend US$10 million to end-finish and heat-treat casing products
April 29, 2011
by The Canadian Press
WELLAND—Lakeside Steel Inc. will expand the capabilities of its plant in Thomasville, Ala. by adding US$10 million to the capital cost.
The Welland-based steel-maker also announced it will sell about $20 million of its securities to a syndicate of underwriters to fund the Alabama project.
Last month, Lakeside announced it would spend US$7.5 million on a new tubular end-finishing and heat-treatment facility, which will be about eight kilometres from its new casing mill in Thomasville.
The company will spend another $10 million so the*mdash;plant can also end-finish and heat-treat casing products—used in onshore drilling applications.
With the financing, the syndicate will buy at least 38.5 million common shares for resale to the pubic. The underwriters have the option to increase the total number of shares by up to 5.58 million.