SOURCE: Stelax Industries Ltd.

March 23, 2005 08:30 ET

Stelax Announces Stonecutters Bridge Hong Kong Project

DALLAS, TX -- (MARKET WIRE) -- March 23, 2005 -- Stelax International Ltd. and Stelax Industries Ltd. (OTC: STAX) (Euronext Symbol: "STAX") announced that Stelax has received the largest contract yet awarded, 6.4 million lbs. of stainless rebar, for the Stonecutters Bridge in Hong Kong with a value of Euro 8.5 million (approximately U.S. $11,000,000). Stelax International Ltd. was awarded contract number HY/2002/26 by the Maeda-Hitachi-Yokogawa-Hsin Chong J.V., which was secured through Stelax Hong Kong agents for NUOVINOX™ and stainless steel rebar, Concord Holdings. The first delivery was dispatched in December 2004.

The Stonecutters Bridge project, estimated by the Hong Kong Highway Department to cost HK$ 5 billion, is expected to be open by the end of 2008. The 1.6 kilometer long bridge will be the world's longest cable-stayed bridge across the Rambler Channel, the entrance to Hong Kong's container port, with a record main span of 1,018 meters and is designed to withstand the severe typhoons which batter Hong Kong every year.

Stainless rebar, some of which is 50mm in diameter, the largest ever made in grade BSS 1.4301 (AISI 304), will be used in the splash zones of the foundations and for the outer reinforcing bars for the 2 main towers, which will be over 180 meters high. Although Mr. Hamada, Project Manager of the Maeda J-V, had stated there was a very strong case to use NUOVINOX™ for much of this project, however, due to the large rebar sizes required and time constraints dictated by the project the rebar was subcontracted out. Stelax International Ltd. has chosen Cogne Acciai Speciali S.p.A. of Aosta, Italy as the subcontractor for the solid stainless steel.

Mr. Herbert Wong, Chairman of Concord Holdings and the exclusive Hong Kong agents for Stelax, stated: "Concord and Stelax are very fortuitously poised, in time and place, with the world standard set through Hong Kong bridge projects which have already specified stainless and with several even larger projects still to come also earmarked to use stainless or stainless clad rebar. A product like NUOVINOX™, not only combines the corrosion resistance of stainless steel with the superior tensile characteristics of carbon steel, its price is less than half that of solid stainless steel, which makes it a new world standard for a new world trend in bridge design which is increasingly demanding bridge lives of over 100 years."

Mr. Antonino Cacace, Managing Director of Stelax International Ltd. and Project Coordinator for the Stonecutters Bridge project, stated: "We are very pleased to have brought together a strong team with Cogne and its worldwide reputation for manufacturing quality solid stainless steel to satisfy the demanding requirements for the Stonecutters Bridge."

This project should enhance the capability of Stelax to use NUOVINOX™, in addition to solid stainless steel on forthcoming major projects in the Hong Kong region.

Stelax International Ltd. manufactures NUOVINOX™ in Wales, United Kingdom, and produces two separate product lines through the Aberneath facility: "NUOVINOX™," a stainless steel cladded product with a carbon steel core utilizing the company's unique patented manufacturing process and "StelaBlast™," steel abrasive shot pellets which are used as an abrasive cleaner and polisher in steel manufacturing. Distribution relationships have been set up for NUOVINOX™ in Japan, tge United Kingdom, and Hong Kong.

This press release contains forward-looking statements identified by words such as "believe," "expect," "anticipates," and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements, which speak only as to management's expectations this date.

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Contact Information

  • For Further Information Contact:
    Ross E. Paulson
    Stelax, Inc.
    Stelax Industries Ltd.
    Stelax International Ltd.
    P/F: (+1) 425 823-1913
    E: rpaulson@stelax.com
    W: www.stelax.com