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Schuff Purchases Steel Fabrication Facility in Ottawa, Kansas; Plant to Meet Growing Demand in Western Markets and Open New Markets in the Midwest

Posted on: Monday, 18 July 2005, 09:07 CDT

Schuff International Inc. (Pink Sheets:SHFK), a family of companies providing fully integrated steel construction services, today announced that its subsidiary, Schuff Steel Co., has purchased a steel fabrication plant and certain other assets of Kansas City, Mo.-based Havens Steel Co. for $4.5 million in cash.

The 153,600-square-foot facility is located on 71 acres in Ottawa, approximately 60 miles southwest of Kansas City and has an annual capacity of more than 30,000 tons of specialty fabricated steel. Schuff has also hired more than 100 former Havens Steel employees to work at the plant.

"The Ottawa facility will expand Schuff's capacity, allowing us to better service our growing customer base, especially in the southwest, Colorado and Southern California. The location of the plant in the Midwest also opens up new markets for Schuff Steel, which we intend to pursue aggressively," said Scott A. Schuff, president and CEO of Schuff International and Schuff Steel Co. "We're also delighted to welcome the loyal and industrious workforce in place at the Ottawa facility. Schuff has always put a premium on its people, and we're confident that the newest members of the Schuff family share our vision to provide unparalleled service to project owners and contractors."

Additional Details of Purchase

As the sole qualifying bidder in a Chapter 11 bankruptcy proceeding, Schuff received approval of the purchase from the U.S. Bankruptcy Court for the Western District of Missouri on Friday, July 15. As part of a lease agreement previously approved by the Bankruptcy Court, Schuff agreed to complete certain fabrication services for the Phoenix Convention Center Expansion, Phase I project in support of Havens' existing contract for the project.

Schuff International Inc. is a family of steel fabrication and erection companies providing a fully integrated range of steel construction services, including design engineering, detailing, joist manufacturing, fabrication and erection, and project management expertise. The company has multi-state operations primarily focused in the U.S. Sunbelt.

For more information, please visit the company's Web site, http://www.schuff.com.

Certain statements in this news release may contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

Source: Business Wire

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