CLEVELAND - (Business Wire) Olympic Steel, Inc. (Nasdaq: ZEUS), a national steel service center, today announced that it has entered into an agreement to purchase a 62,000 square foot processing facility in Dover, Ohio. The closing of the transaction is expected to occur later in the third quarter of 2008, subject to the satisfaction or waiver of customary closing conditions. The facility is expected to be operational during the fourth quarter of 2008.
“We are pleased to announce the addition of a new satellite facility in Dover, Ohio,” stated Michael D. Siegal, Chairman and Chief Executive Officer. “A key component of our strategy is to be closer to our customer base. This new facility will allow us to better serve original equipment manufacturers in Central Ohio and the adjoining states. We are extremely thankful to the State of Ohio, the Tuscarawas County Commissioners and Port Authority, and the City of Dover for their efforts in supporting this approximately $5 million investment project,” concluded Mr. Siegal.
Founded in 1954, Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the Company operates 15 facilities. For further information, visit the Company’s web site at http://www.olysteel.com.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “may,” “will,” “should,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” or “continue,” as well as the negative of these terms or other similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements.
Such risks and uncertainties include, but are not limited to: the timely and successful completion of the acquisition of the Dover processing facility; the timely and successful installation of processing equipment, cost overruns and the availability of labor and adequate customer demand to support the Dover processing facility; general and global business, economic and political conditions; competitive factors such as the availability and pricing of steel, industry inventory levels, and rapid fluctuations in customer demand and pricing; the cyclicality and volatility within the steel industry; the ability of customers (especially those that may be highly leveraged or in the automotive industry) to maintain their credit availability; layoffs or work stoppages by the Company’s, suppliers’ or customers’ personnel; the availability and cost of transportation and logistical services; equipment installation delays or malfunctions; and the successes of the Company’s capital investments, efforts and initiatives to increase sales volumes, maintain cash turnover, maintain or improve inventory turnover, reduce costs, and improve customer service. Further information on these and other risks and uncertainties is provided under Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which disclosure is incorporated herein by reference, and elsewhere in reports that the Company files or furnishes with the SEC. This release speaks only as of its date and the Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. You are advised, however, to consult any further disclosures the Company makes on related subjects in its reports filed with or furnished to the SEC.
Olympic Steel, Inc.
Richard T. Marabito, 216-292-3800
Chief Financial Officer
Fax: 216-292-3974
