In its continuing effort to reduce costs, Slater Steel has initiated discussions with the unions representing its employees at Atlas Stainless Steels (the only producer of stainless steel flat-rolled products in Canada, based in Sorel-Tracy, Quebec) and other parties regarding its operations at Atlas Stainless Steels. Slater is reviewing alternatives to reduce costs that could result in the closure of certain operations and a reduction in manpower levels. During 2001, Atlas Stainless Steels has been unprofitable and it is anticipated that the facility will incur losses of approximately CAD 5 million during the second quarter.