| Lakeside Steel Inc $41.5 Million
Steel Manufacturing Plant,
Thomasville, Alabama
$41.5 Million Steel Manufacturing Construction Project
Lakeside Steel Alabama
44 EB-5 Investors @ $500,000 |
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Lakeside is a 2010 and 2011 TSX Venture Exchange 50 company and a diversified steel pipe and tubing manufacturer. Lakeside’s list of customers includes large oil and gas, mining, automotive and commercial and companies. For fiscal 2010, the oil and gas sector made up approximately 70% of total revenues. For the same period, revenues from the mining, commercial and industrial, and automotive sectors comprised approximately 1%, 20%, and 3% of total revenue, respectively.
On July 29, 2010, the Company announced plans to build a new manufacturing facility in Thomasville, Alabama. The City of Thomasville is located 100 miles north of Mobile, Alabama, and is 600 miles east of Houston, Texas. Once fully operational, the new facility is expected to add 192,000 tons of production capacity, approximately doubling the Company’s current production capacity and creating sufficient new capacity on OCTG casing products to satisfy the growing demand Lakeside has from its U.S. customers, the majority of whom are located in the southern United States.
The total cost of the Alabama expansion project is estimated at $40,000,000 comprised of $22,000,000 for the plant and equipment and $18,000,000 for inventory and working capital, including incentives. Thomasville, Alabama was chosen because of its proximity to both raw material suppliers and customers. Lakeside believes strongly that Alabama provides the right environment in which to operate a manufacturing business and Thomasville specifically will be conducive to a productive and profitable operation for years to come. Once completed, the new facility will be the largest industrial employer in the City of Thomasville. The Company began construction in the fall of 2010 and expects to begin producing pipe for the OCTG and line pipe market by December of 2011.
On February 28, 2011, the Company announced that its board of directors had approved plans to build a new state of the art end-finishing and heat treatment facility. The new facility will provide the Company with vertical integration of finished and upgraded tubular products. The Company expects construction to begin in the month of May at a cost of $12,000,000-$15,000,000 inclusive of working capital needs, and anticipates that it will supply commercial products by February 2012.
On March 23, 2011, the Company announced that it had selected a site in Thomasville, Alabama, for its new USD $7,500,000 state of the art end-finishing and heat treatment facility. The new end-finishing facility will enable the Company to upgrade and process the high value-added API certified J, L, N and P grades of OCTG products that it produces and which are required throughout the majority of drilling operations in North America.
On April 28, 2011, the Company announced that it will expand its previously announced new USD $7,500,000 state of the art tubular end-finishing and heat treatment facility in Thomasville, Alabama, to add end-finishing and heat treatment processing capabilities for casing products. The expansion of the new end-finishing facility, at an additional capital cost of approximately USD $10,000,000, will enable the Company to end-finish and heat treat casing products in addition to previously announced tubular product finishing capabilities.
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