Industry Minister Paradis Reaches an Out-of-Court Settlement in the U. S. Steel Litigation

Ottawa, December 12, 2011—The Honourable Christian Paradis, Minister of Industry, today made the following statement related to the ongoing litigation involving United States Steel Corporation Ltd.:

"I am pleased to announce that after extensive negotiations, U. S. Steel has given significant new and enhanced undertakings under the Investment Canada Act that provide the basis for the Government to settle its lawsuit against U. S. Steel. I have therefore accepted the company's commitments, and I have requested that the Attorney General of Canada discontinue the Government's court action against U. S. Steel.

"When U. S. Steel acquired Stelco Inc. in 2007, it committed to a series of undertakings to demonstrate a likely net benefit to Canada. In July 2009, the Government filed an application in Federal Court for an order requiring U. S. Steel to comply with its undertakings on production and employment. It did so because my predecessor was not satisfied that U. S. Steel was honouring its commitments.

"Recently U. S. Steel approached me with a proposal for new and enhanced undertakings. After extensive negotiations a settlement has been reached that demonstrates U. S. Steel's sustained commitment to operating in Canada.

"U. S. Steel's new commitments, many of which run to 2015, will provide benefits that in all likelihood would not have been obtained through the court process. Under the settlement, U. S. Steel has committed to continue to produce steel in Canada; operate at both Lake Erie and Hamilton plants until 2015, generating continued economic activity; and make at least $50 million in capital investments to maintain the Canadian facilities by December 2015, over and above its original undertaking to invest $200 million by October 31, 2012.

"Further, U. S. Steel has committed to make financial contributions of $3 million toward community and educational programs in Hamilton and Nanticoke. This contribution starts immediately. U. S. Steel will contribute $1 million by early February 2012.

"Going forward, this settlement means that U. S. Steel will continue operations in Canada that provide economic benefit to the communities of Hamilton and Nanticoke.

"Our government was given a strong mandate for our agenda for jobs and growth. This settlement demonstrates that the Investment Canada Act is working by encouraging investment and employment in Canada."

For further information (media only), please contact:

Richard Walker
Director of Communications
Office of the Honourable Christian Paradis
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502