News Release Archive
SYDNEY STEEL--GOVERNMENT BEGINS EVALUATION OF PROPOSALS
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Proposals for the private ownership of Sydney Steel were opened
this afternoon, Labour Minister Manning MacDonald announced
today.
"We have started the process of evaluating proposals from the
three private companies interested in running Sydney Steel," said
the minister. "A team of experts has started work to ensure we
find the best possible operator for the plant."
The evaluation team includes government officials as well as
private experts, such as consultants Arthur D. Little and law
firm Stewart McKelvey Stirling Scales. The team will conduct a
detailed, confidential analysis of the plans.
"The team will look at all aspects of the proposals from finances
to human resources to marketing and legal implications," said Mr.
MacDonald. "We'll be looking to ensure there is a solid business
plan for Sydney Steel."
Last Friday, the province received proposals from three private
companies interested in purchasing the steel plant: Grupo Acerero
Del Norte of Mexico, Global Steel Holdings Inc. of Canada and
Stavan-Transmet of Russia.
United Steelworkers of America indicated it would not be making a
proposal for ownership of Sydney Steel. The minister has invited
the union to participate as a partner in the review of proposals.
Criteria to be evaluated include: the proponent's experience and
expertise as a steelmaker; how Sysco fits into a company's
broader manufacturing and marketing plans; plans for product
diversification and production capacity; and plans for the
long-term future of Sydney Steel.
After the evaluation is complete, government will enter into
negotiations with a proponent. The minister indicated he would
work to move the process along in a timely manner.
"Our goal is for Sydney Steel to be a successful, privately run
steel plant," said Mr. MacDonald. "Today, we are heading down the
road to that goal. At the end of the day, I am confident we will
have a deal that is good for all Nova Scotians."
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Contact: Manning MacDonald
902-424-6647
Jennifer MacIsaac
902-424-3219 or 902-424-4680
jlw July 8, 1997 4:50 p.m.
