Lakeside Steel Announces Additional Cost Containment Measures
02/04/2009 - Lakeside Steel announced the temporary layoff of up to an additional 84 hourly employees at Lakeside Steel, as well as a temporary one-week halt of production at its Welland, Ont., production facilities.
Lakeside Steel Inc. announced the temporary layoff of up to an additional 84 hourly employees at its wholly owned subsidiary, Lakeside Steel Corp. The 84 hourly employees represent approximately 33% of the company’s unionized workforce.
The company said the action would help it to contain costs in declining markets. The layoff follows the company’s temporary layoff of 61 hourly employees, as announced in January 2009. An additional 25 hourly employees have elected to retire.
Lakeside has also made a workshare program application to Human Resources and Skills Development Canada for its salaried employees.
Lakeside has also made a workshare program application to Human Resources and Skills Development Canada for its salaried employees.
In addition to the temporary layoffs, Lakeside said it would also contain costs by temporarily halting production at its facilities in Welland during the period beginning Monday, February 2 and ending on February 9, 2009. The company will maintain certain shipping and administrative functions during the temporary production halt.
The company said that its management remains confident that its earlier projections of EBITDA are still achievable.
Lakeside Steel is the parent company of Lakeside, a diversified steel pipe and tubing manufacturer. Lakeside's list of customers includes large oil and gas, mining, automotive and commercial and industrial supply companies. Lakeside also manufactures pipe and mechanical tubing for the resale market, which is sold to distributors in Eastern Canada and the Northeastern United States. Lakeside manufactures a variety of products for these industries including oil well tubing and casing, mechanical tubing, pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside serves customers worldwide, either directly or indirectly, in Canada, Australia and the United States.
