Stelco Inc. announced that the Superior Court of Justice (Ontario) has approved the sale of Welland Pipe's U&O Mill to Grinolet Inc.

The Court sealed that part of the agreement of purchase and sale dealing with the purchase price until the transaction has closed. Stelco says the purchase price is in excess of the independent liquidation appraisal values provided by Danbury Sales Inc.

The Court-appointed Monitor had recommended that the Court approve the sale on the grounds that Stelco adequately canvassed the market for prospective purchasers, the purchase price was fair and commercially reasonable, and the sale represented the best recovery for Welland Pipe stakeholders.

Lack of demand for very large diameter pipe forced the closure of Welland Pipe's operations in March 2003. As noted previously, Welland Pipe's land and buildings have been listed for sale with a listing price of $4 million.

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses.