Stelco Inc. has received a letter from The Honorable Greg Sorbara, Minister of Finance for the Government of Ontario regarding funding of Stelco’s pension plans, and Stelco's Plan Outline.

In the letter, Minister Sorbara reiterates the Province's position on the Section 5.1 (of the Regulations under The Pension Benefits Act (Ontario)). He states, "As you were previously informed, on Stelco's emergence from the Companies' Creditors Arrangement Act protection, I will seek the approval of the Lieutenant-Governor-in-Council to amend the Regulation under the Pension Benefits Act so that Stelco will no longer have the benefit of section 5.1 of the Regulation."

The letter also restates that the company's Plan Outline is not acceptable to the Province. Minister Sorbara also states, "We remain willing to be flexible and intend to continue a constructive dialogue with all affected parties to see if an acceptable restructuring plan can be developed that meets both the Province's objectives and legitimate concerns of other stakeholders."

Courtney Pratt, Stelco's President and CEO, said, "Our goal remains to find a middle ground that everyone can support, and that is compatible with the long-term viability of Stelco. As we stated last week, to date the plan outline has not yet been endorsed by any stakeholder group. We intend to continue our discussions with stakeholders with the goal of finding a satisfactory solution that all stakeholders will support."

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.