08:11 AM EDT, 09/17/2025 (MT Newswires) -- Russel Metals ( RUSMF ) announced Wednesday a series of initiatives related to its Western Canadian operations that will rationalize excess capacity/redundant locations, reduce invested capital and gain operational efficiencies.

The company said binding agreements are in place to sell the real estate associated with its branches in Delta, British Columbia, and Saskatoon in Saskatchewan. It expects the total cash proceeds to be greater than $40 million and result in gains on sale for each transaction on completion, which are expected in the fourth quarter of 2025 for the Saskatoon location and second quarter of 2026 for the Delta location.

"The permanent closure of the Delta location will result in a repatriation of excess working capital, once the inventories are integrated into our other locations in the region," the company said in a statement.

"Certain processing equipment, racking and cranes at three of our Western Canadian locations (including the Delta location) will be removed, refurbished and relocated to our other operations in North America or sold, resulting in a capital avoidance related to the repurposing of such equipment."

The company will also record a provision for restructuring relating to the permanent closure of the Delta location of about $4 million in the third quarter of this year. Upon completion of these initiatives, the invested capital will be further reduced by $40 million to $50 million for a cumulative invested capital reduction of about $100 million, the upper end of its original goal of $50 million to $100 million.

Shares of the company closed up 0.1% to $41.34 on the Toronto Stock Exchange Tuesday.