News Release Archive

The Nova Scotia government is taking another step forward in its
plan to sell Sydney Steel to private owners, Economic Development
and Tourism Minister Manning MacDonald announced today.

In early July, the province received proposals from three
companies interested in purchasing the steel plant -- Grupo
Acerero Del Norte of Mexico, Global Steel Holdings Inc. of
Canada, and Stavan-Transmet of Russia.

One of the next steps involves government officials sitting down
with the United Steelworkers of America to review the proposals
and a confidential initial evaluation prepared by consultants
Arthur D. Little. This confidential evaluation is now in
government's hands.

"Before we go any further, we want to involve the union in our
evaluation," said the minister. "We need their experience and
input as partners in the process."

Criteria for evaluating proposals 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.

"We have a process in place that involves consultation and
careful negotiation," said Mr. MacDonald. "We want to make sure
it leads to our ultimate goal of seeing Sydney Steel operating as
a successful, privately run plant. We want to make sure we are
getting the best deal for Sysco workers, for Nova Scotian
taxpayers and for the future of Sysco."

The province will also begin discussions with Minmetals of China
regarding its future role and relationship with Sydney Steel. A
1994 agreement between the province and Minmetals requires the
Chinese company to buy the assets of Sysco at the end of this
year by paying $30 million Cdn, plus other costs. They would also
assume obligations incurred during the period of joint operation.

"In order for negotiations to enter the next stage, we have to
establish a firm understanding of our role with Minmetals," said
Mr. MacDonald. He indicated he would work to move the process
along in a timely manner.


Contact: Manning MacDonald

         Jennifer MacIsaac
         902-424-3219 or 902-424-4680

trp                    July 31, 1997 - 4:20 p.m.