Lakeside Steel Inc. announced plans to build a new manufacturing facility in Thomasville, Ala. Once fully operational, the new facility is expected to add 192,000 tons of capacity, approximately doubling the company's total production capacity.
Lakeside also notes that it will create sufficient new capacity on OCTG casing products to satisfy growing demand from its American customers, the majority of which are located in the southern United States. The project is expected to be financed through a combination of equity and debt.
The total cost of the expansion project is estimated to be $40 million, comprised of $22 million for plant and equipment and $18 million for inventory and working capital.
Mill equipment is being sourced from Freedom Machinery Co. Inc. based in Toledo, Ohio. Freedom Machinery is a worldwide buyer and supplier of quality tube and pipe mill equipment.
Lakeside expects to start construction on the Thomasville expansion project in the fall 2010 and plans to be producing pipe for the OCTG and line pipe market by December 2011.
Chris Roik, Lakeside's senior most experienced operations manager in Welland, Ont., has been appointed Vice President and General Manager of the new facility in Alabama and will commence his responsibilities for this project immediately.
Lakeside continues to invest in its existing facility in Welland, as well. The company has invested $9.5 million in capital improvements over the past three years and says it is committed to spending a further $6 million during the balance of fiscal 2011.
Lakeside Steel, located in Welland, Ont., is a diversified steel pipe and tubing manufacturer. Lakeside's customers include 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 and the United States.