Hamilton, ON — This city’s two major steelmakers, Stelco Inc. and Dofasco Inc., has released widely diverging news in the past week.
The good news comes from Dofasco, which tripled its second-quarter profits for 2004. It made a profit of $110.5 million for the quarter ending June 30, up from $38.7 million a year earlier.
Meanwhile, Stelco, which is operating under bankruptcy protection, announced plans to close or sell eight obsolete facilities or non-core businesses. It also plans to reduce the number of steel products it makes.
Captial spending will continue over the next year and a half to two years and cost between $360 million and $465 million as part of a revamping of the company.
Stelco’s Plate Mill and Welland Pipe operations (closed since 2003), along with the Rod Mill, will be disposed of, and a final decision has yet to be made on two pickling lines, a strip mill at the Hamilton plant, and subsidiaries Stelwire, Stelfil and Stelpipe.