Dofasco
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Dofasco is a steel company based in Hamilton, Ontario, Canada, which is also home to longtime Canadian rival Stelco. Dofasco is currently a stand alone subsidiary of Arcelor Mittal, the world's largest steel producer. Previously ordered by the U.S. Department of Justice to divest itself of the Canadian company, Arcelor Mittal has now been allowed to retain Dofasco provided it sells several of its American assets instead.[1]
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[edit] History
Clifton and Frank Sherman founded Dominion Foundries and Steel (later called Dofasco) in 1912, creating a giant that would bring prosperity and identity to the city of Hamilton, Ontario. [2] Dofasco was incorporated as Dominion Steel Castings Company Limited in 1912, becoming Dominion Foundries and Steel Company in 1917.[3] Its longtime nickname "Dofasco" was adopted as its legal name in 1980.[3] Dofasco owned and operated a number of subsidiaries, including National Steel Car, a Hamilton-based railway freight car manufacturer, from 1962 to 1994, and Algoma Steel, from 1988 to 1991, until union and financial difficulties ultimately forced Dofasco to divest the company. During the recession of the early 1990s, Dofasco made its first permanent layoffs since the Great Depression of the 1930s.
In January 2006, Luxembourg-based Arcelor, then the world's 2nd largest steel producer by volume, beat out rival German steel producer, ThyssenKrupp AG, to purchase Dofasco. Arcelor was itself subsequently taken over by the world's largest steel producer, Mittal. However, in an effort to prevent Dofasco from falling into ThyssenKrupp's hands, Arcelor management locked Dofasco into an independent trust based in the Netherlands. Mittal had reportedly promised to sell Dofasco to ThyssenKrupp, but the Dutch trust has thus far refused the transaction. It is now likely that Dofasco will be retained by the combined Arcelor Mittal, and eventually integrated into their international operations, pending court approval.[4]
Dofasco has won awards for being the "most sustainable manufacturing company" in North America.[5]
[edit] Unionization
Unlike rival Stelco, Dofasco is non-unionized, though several attempts have been made to organize by the United Steelworkers of America. Nevertheless, union negotiations at Stelco have a strong influence on wages and benefits at Dofasco.
[edit] Notes
- ^ Hamilton Spectator News Wire. "Dofasco deadline looms", Hamilton Spectator, 2006-12-14. Retrieved on 2006-12-26. (in English)
- ^ Hamilton Spectator: "The Greatest Hamiltonian". (II). Retrieved on 2007-02-11.
- ^ a b History of Industry in Hamilton, Ontario. Retrieved on 2007-01-29.
- ^ AP. "ThyssenKrupp goes to court over Dofasco", Globe and Mail, 2006-12-26. Retrieved on 2006-12-26. (in English)
- ^ Dow Jones Sustainability Group Index via Dofasco (2000-03-12). Dofasco Among World's Most Sustainable Companies. Press release. Retrieved on 2006-12-26.
