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Algoma Steel Inc. - Company Announcement

22 October 1998

Algoma Steel Inc. - Company Announcement

    SAULT STE. MARIE, Ontario--Oct. 22, 1998-- Algoma Steel Inc.(TSE:ALG.) Algoma Steel Inc. today announced that effective November 16, 1998, its Tubular Business Unit will be temporarily idle due to a lack of orders. This temporary cessation of operations is expected to last into the middle of January 1999. There will be sufficient semi-finished inventory to facilitate a quick return to operations when required. This lack of orders is caused by a number of factors including the collapse of oil prices globally and its impact on oil exploration and development activity.
    During the cessation of operations, Tubular Business Unit employees will be redeployed in the Steelworks displacing current temporary employees.
    Glenn Bond, Vice President - Operations, said: "The cessation of operations will have a negative impact on fourth quarter earnings; however, shipments of tubular products will continue, thereby reducing tubular inventories."
    Algoma Steel, based in Sault Ste. Marie, Ontario, is Canada's third largest integrated steel producer. Revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet, plate, seamless tubular products and structural products.