Russel Metals Inc.

Russel Metals Inc.

October 20, 2010 14:17 ET

Russel Metals Comments on Potential Strike in British Columbia

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2010) - Russel Metals Inc. (TSX:RUS) today announced that it is currently in mediation discussions with a B.C. Ministry of Labour mediator and United Steelworkers representatives to help reach agreement on language and issues related to five plants in British Columbia. The United Steelworkers issued a news release yesterday regarding a strike mandate at the Company's A.J. Forsyth operations in British Columbia. Under the mediation process the parties can neither strike nor force a lockout.

Brian R. Hedges, President and CEO, stated "Our British Columbia operations were significantly impacted by the slowdown in the forestry industry prior to 2008 and further impacted by the economic downturn in 2008. We do not expect to return to previous volumes at a number of our operations and we need to make many changes throughout our British Columbia region. A strike call by the union would cause hardship for all of our employees and their families, as well as create uncertainty in our customer base and, as such, is not our preferred solution. The decision to put out an announcement by the union of a strike mandate is being taken seriously by management. We will take all avenues open to us to allow us to provide continued service to our customers."

Marion E. Britton, Vice President and CFO, stated "A strike at these operations would not materially impact our fourth quarter results."

Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Mégantic Métal, Métaux Russel, Métaux Russel Produits Spécialisés, Milspec, Norton Metals, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.

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