OIL COUNTRY TUBULAR GOODS (OCTG) PIPELINE TO DYNAMIC GROWTH
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
OIL COUNTRY TUBULAR GOODS (OCTG)
PIPELINE TO DYNAMIC GROWTH
2March 22, 2011
STEEL CORPORATION
DISCLAIMER
This Presentation may contain forward-looking statements with respect to Lakeside Steel Inc. and its
wholly-owned subsidiary, Lakeside Steel Corporation (collectively, the “Company”), its operations,
strategy, financial performance, and condition. These statements generally can be identified by use of
forward looking words such as “may”, “will”, “pro forma”, “expect”, “estimate”, “anticipate”, “intends”,
“believe”, or “continue”, or the negative thereof or similar variations. The actual results and
performance of the Company discussed herein could differ materially from those expressed or implied
by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Important factors that could cause actual results to differ materially
from expectations include, among other things, general economic and market factors, competition,
changes in government regulations, and the factors described under “Risk Factors” in the Management’s
Discussion and Analysis and Filing Statement of Lakeside Steel Inc., which is available at www.sedar.com.
The cautionary statements qualify all forward-looking statements attributable to the Company and
persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of
the date of this press release and the Company has no obligation to update such statements. The Reader
is cautioned not to place undue reliance on forward-looking statements.
STEEL CORPORATION
WHO IS LAKESIDE?
Lakeside Steel Corporation is …
A leading, diversified North American manufacturer of high-
quality oil and gas industry pipe products
Over 100 years of manufacturing experience
Uniquely positioned as the only TSX:V publicly traded steel pipe
and tube manufacturer in Canada
Growth-oriented
Extremely strong in supplying to key Distribution partners in the
global high-growth oil and gas market
3March 22, 2011
STEEL CORPORATION
CORE ELEMENTS
Annual capacity of 450,000 tons
Senior Management Team with over 200 years combined Pipe,
Tube, and Steel experience
Delivering highest quality ERW API Pipe and Tube
Committed to OCTG Casing, Tubing, and Line Pipe for the
Energy industry in North America
One of the largest independent producers of Casing and
Stretch Reduced API Tubing based in North America
High-output, high quality SRM Mill and new Alabama Casing
Mill geographically positioned for growth
GROWTH
QUALITY
EXPERT
TEAM
GROWTH
SCOPE
SIZE
ENERGY
4March 22, 2011
STEEL CORPORATION
THE LAKESIDE RENAISSANCE
NEW
MANAGEMENT
TEAM
FLEXIBLE
PRODUCT
OFFERING
STREAMLINED
CANADA
PLANTCONTINUED
US
GROWTH
REALIGNED
SUPPLY
CHAIN
NEW CAPITAL
INVESTMENT
OCTG
MARKET
FOCUSSALES
TEAM
FOCUS
U.S.
MARKET
EXPANSION
5
…with plans for continuing the
momentum with programs that will
drive additional growth
Established a strategic corporate
renewal plan and tactical market shift
over18 months…
March 22, 2011
STEEL CORPORATION
KEY FACTS
6
o Alabama 10” Mill
o Quench and Temper
o Upsetting and Threading
o New Welder
o New Ultrasonic
o 3-Slip Rail Siding
o Virtual Macro
March 22, 2011
7
STEEL CORPORATION
COMPANY STRENGTHS
Dedicated, motivated, highly-skilled
workforce of 400
Top quality North American raw
material suppliers
Strong position at key Processors for
End-finishing, Heat-Treat, and FBNAU
Unique high quality domestic product
at competitive price
North American brand recognition with
key Distributors and End-users
ISO certified and API 5L and 5CT
Licensed since 1988
March 22, 2011
STEEL CORPORATION
SUPPLY CHAIN OPTIMIZATION
8
On-site Upsetting, Threading, and
Normalizing Capabilities
Allows in-house finishing function
On-site Rail Facility (Canada and Alabama)
Allows Lakeside to load directly on-site and
eliminate extra shipping step
Exceeding
Customer
expectations for
on-time delivery
performance
Improved
Lead Times
Best-in-Class Quality
Program
Increased
Inventory Turns
March 22, 2011
STEEL CORPORATION
A BRIGHT FUTURE
9March 22, 2011
WITH AN OVERRIDING FOCUS ON
QUALITY AND SAFETY…
UPGRADED
CANADA
FACILITY
ALABAMA
USA
FACILITY
NEW
PROCESSING
FACILITY
SHORT LEAD
TIMES
QUALITY
SUPPLIERS
PRODUCT
FLEXIBILITY
UNIQUE STRETCH
REDUCED
PRODUCT
STEEL CORPORATION
OCTG DEMAND PARALLELS RIG COUNT
10
Source: Baker Hughes
Source: Bloomberg, Cormark Securities Inc.
US
$/b
bl
WTI Crude Oil Price Chart
$60.00
$70.00
$80.00
$90.00
$100.00
$110.00
Ja
n-1
0
Ma
r-1
0
Ma
y-1
0
Ju
l-1
0
Se
p-1
0
No
v-1
0
Ja
n-1
1
Ma
r-1
1
Ma
y-1
1
Ju
l-1
1
Se
p-1
1
No
v-1
1
Ja
n-1
2
Ma
r-1
2
Historical Price
12 Month Forward Strip
Source: Cormark
Source: Pipe Logix
March 22, 2011
Standardized steel chemistry
All Tubing upgradable L80, N80, and P110
Best in class rejection rates
Excellent OD and wall thickness control
SRM Tubing product competes well with Seamless
Lakeside Stretch Reduced Tubing is considered “normalized”
before upset
STEEL CORPORATION
UNIQUE STRETCH REDUCED TUBING
11March 22, 2011
ERW Weld Zone Pre-Stretch Reduction
ERW Weld Zone Post-Stretch Reduction
STEEL CORPORATION
IS IT SEAMLESS? ERW STRETCH REDUCED
12March 22, 2011
STEEL CORPORATION
WHY ALABAMA?
New Facility to be located in Thomasville,
Alabama (USA)
Annual capacity of 192,000 NT
Allows for optimization of supply chain
o Close proximity to HRC Suppliers
o Ideal rail, barge, and truck transportation
to key markets
Allows for reduced conversion costs
Close proximity to key markets
13March 22, 2011
Project on schedule and on budget
Equipment on schedule; very pleased with quality
Hiring is going well
No significant issues to-date
First pipe trial slated for December 1, 2011
Excellent feedback from customers - strong indications on
commitments for orders
STEEL CORPORATION
LAKESIDE STEEL ALABAMA
14
FEBRUARY 2011
March 22, 2011
API 5L: Grade A, B, and X42-X70
API 5CT: Grade H40, J55, L80, N80, P110
Proprietary Spec : Stel 65 and Stel 80
Casing Products: 4 ½” – 9 ⅝” ODs x .156” x .500” Wall
Line Pipe Products: 4.5”-10 ¾” ODs x .156”- .500” Wall
STEEL CORPORATION
LAKESIDE ALABAMA PRODUCTS
15March 22, 2011
STEEL CORPORATION
U.S. FINISHING OPERATIONS
16
HEAT TREAT AND THREADING ARE CRITICAL
CONSTRAINTS IN THE OCTG INDUSTRY…
Higher value-added product
Standalone Heat Treat and Thread business
LAKESIDE FACILITIES…
Heat Treat
Tubing Upsetting and Threading
Casing Threading
SELF SUFFICIENCY IN
PRODUCTION AND PROCESSING
March 22, 2011
STEEL CORPORATION
FUTURE GROWTH OPPORTUNITIES
Full-end Finishing in Canada
and U.S.
Premium connections
Normalized Tubing in Canada facility
Line Pipe: 60’
Increased product range: 1 ¼” to 10
¾” – 0.140 to 0.500 Gauge
Heat-Treat Tubing in Canada and
Casing in U.S: L,N, and P110
Focusing on the Future…
…Lakeside Steel Corporation -
forging new frontiers in OCTG steel
line pipe products
17March 22, 2011
STEEL CORPORATION
Q&A
Proudly manufacturing and distributing quality OCTG products throughout North America
Lakeside Steel Corporation
160 Dain Avenue
P.O. Box 1010
Welland, Ontario
Canada
L3B 5Y6
www.lakesidesteelcorp.ca
18March 22, 2011
Related Documents
