Advertisement

Hamilton’s Stelco reveals Paul Scherzer as new CFO

Hamilton steel maker Stelco has entered into a long-term deal to buy iron ore pellets from one of the largest U.S. mines.
Hamilton steel maker Stelco has entered into a long-term deal to buy iron ore pellets from one of the largest U.S. mines. Frank Gunn/Canadian Press

Stelco Holdings Inc. says a new chief financial officer will begin working with the steelmaker in mid-March.

Paul Scherzer – a Montreal-born metals and mining investment banker for close to 25 years – was appointed to the position on Monday.

“Paul’s addition to our team adds more than two-decades of steel-related financial, investment banking and capital markets experience. This, coupled with his financial acumen and executive experience, make him a valued addition to our organization as we go forward to our next chapter,” said Alan Kestenbaum, executive chairman and CEO of Stelco Holdings.

READ MORE: ‘Unprecedented’ drop in steel prices hurts bottom line of Hamilton’s Stelco

The appointment comes after a Kestenbaum took over the CEO post at the troubled company two weeks ago.

Story continues below advertisement

In February, the Hamilton steelmaker announced a $24 million loss for the quarter ending Dec. 31, 2019. The company said 2019 revenue totalled $435 million, down from $648 million a year earlier.

In a statement, the steelmaker said an “unprecedented” drop in prices was the source of the loss. The company says it’s endured a 28 per cent decrease in the average steel selling price and six per cent lower steel shipping volumes over the past year.

“Having known Paul for more than 10 years, I know that [he] will work tirelessly to implement the strategic vision for our business and continue to build upon the company’s success to date,” said Kestenbaum.

Roy Collins, vice-president of internal audit for Stelco, will take on the role of Interim CFO.