Bloomberg Reuters Interview
By Mark Kuiper

Editor's Note: Below is the first in a series of interviews by
Market News International with U.S. corporate executives. The interviews
are intended to inform potential investors and to provide a window
into specific sectors of the U.S. economy.

Company Name: Stelax Industries Ltd., Dallas, Texas
Product: Stainless steel clad rebars/dowels in highway infrastructure
CEO: Harmon Hardy
Ticker: STAX (NASDAQ)
Debt Outstanding: None
Credit Rating: None
Number of employees: 45
Customer Base: 95% US

Please give me a brief overview of your company's profile.
Stelax is based around a number of international patents for a
process for making steel stronger and less corrosive...the process
involves metallurgically bonding or cladding rolled stainless steel to a
carbon steel core. It performs like stainless steel, but with a third of
the cost. We essentially take an expensive exterior and bond it around
an inexpensive core to make a non-corrosive product. Our main products
then are bridge rebars and dowels.

What's your market like?
The dowels are placed to transfer the traffic load, and helps
extend the life of highways, because they are non-corrosive. Many states
are going into a retrofit program, with Federal highways where older
rebars have rusted and thus expanded, crumbling the concrete, and
creating potholes in roadways.

I'd say about 50% of all states in the US are looking to retrofit
right now. California, for example, is undertaking a massive retrofit
project now.

In terms of testing the product, we have done accelerated corrosive
tests ... testing has been done with Florida DOT and in the UK. We
believe the product can last between one and two hundred years but the
design aim is 75 to 100 years. We are increasing the life of
infrastructure. For example, when a bridge goes up, a lot of money is
lost maintaining and retrofitting the bridge, by traffic interruptions,
detours, worker overtime, etc.

What are the primary factors affecting your company's margins?
Stainless steel costs are the biggest cost contributor, but the
core is the least expensive because we use scrap metal, which undergoes
a cleaning process and is pulverized then pressed into the core...we
avoid the melting process, which can be expensive...and also produces
more pollution. Our process is actually a very green process;
environmentally its very safe and uses less power and we manufacture in
the UK, where economic incentives are offered. But, we are dedicated
this year to moving facilities to a US location; we are not under a lot
of price pressure and we are the only company that does this process;

What's the competitive arena like?
Epoxy coated rebars/products are cheaper, but not as long lasting.
We don't consider these producers our competitors, however. The
competitive arena is relatively nonexistent right now as we are the only
company making this product. It's a huge market now, there are other
markets that exist here, but the rebar and dowel market is the most
favorable.

Where would you like to see your company in three years?
This is a new commodity product and has many applications. We
believe we can offer grid flooring, which is metal placed in a grid, but
we can also make pipe in this process; we can clad with a noncorrosive
surface. We also see opportunities in the auto parts industry with
converters.

What are your company's competitive advantages vis a vis your
competitors?
We don't have any direct competitors. We are creating markets that
don't exist for solid stainless steel and we are expanding the markets
that exist here now. We are looking at galvanized steel as a market that
we can be competitive down the road.6) Do you have any debt issuance plans?
We did a private placement of $5.0 million last year. We do not have
any plans to do more at the moment.

What are your company capital building plans?
We plan to have facilities this year in the U.S. but we are
undecided as to where. We are looking for economic advantage. The
business has been wide spread in the states and we think certain states
in the Northeast and along coastal areas as the largest users of the
product.

Are there any potential acquisition targets you are considering now?
None at this time. We might look at things that would help
establish our opportunities in the U.S., facilities and distribution
mainly as acquisition targets.

Are there any partnerships in the pipeline?
We think there's a basis for partnerships just based on the size of the
market, especially in the global marketplace. This is an area where
there are not a lot of breakthroughs, but corrosion is a world problem.