The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article published in the March 9, 2005 edition

Mar. 9, 2005. 12:43 AM

High rollers

By Mark McNeil
The Hamilton Spectator

No one would be surprised if we woke up one morning to hear that bankruptcy-protected Stelco is being sold. But industry analysts say the same fate could soon befall Dofasco as well.

So goes the absurd, dog-eat-dog world of steelmaking these days, where even strong, successful companies have wolves at the door.

There is growing speculation that Arcelor, the world's No. 2 steelmaker, is taking a hard look at Dofasco, as outlined in a Spectator story yesterday. Business Week magazine says Dofasco is a top candidate for the Luxembourg-based steelmaker.

Neither Dofasco nor Arcelor is talking about the possibility. But the discussion does lead one to wonder about the very real chance of both of Hamilton's big steelmakers some day being owned by foreign-based goliaths.

One of the most enthusiastic bidders for Stelco has been Russian-based OAO Severstal although that bid, along with three others, was turned down by Stelco's board. Severstal says it isn't giving up.

Some, such as NDP steel critic Dave Christopherson, argue that steelmaking is too important to the nationalistic interests of Canada to allow foreign control. But how can the tidal waves of consolidation be held back?

Industry analysts believe in five to ten years nearly all of the world's steel production will be handled by four or five global players.

In this scenario, Stelco and Dofasco would end up being divisions of these much larger entities. And for Hamilton, our product may be steel but the boss could be Europe.