Dofasco will work towards securing a more lucrative steel supply contract with Toyota Motor after a report said the Japanese automaker will build an assembly plant in Canada, the steelmaker told Reuters.
Go deeper with GlobalData
Canada’s second biggest steelmaker, which delivers about 45% of its product to the automotive industry, reportedly is hopeful it can reach a deal with Toyota even though no firm commitments are in place.
“I would imagine with this decision being made we’re going to be in discussions with them almost immediately,” Dofasco spokesman Gord Forstner told Reuters, adding: “Our hope is that we would be able to grow our business with them and we have a reasonable expectation … of being able to do that.”
Reuters noted that, earlier in May, Dofasco said it was open to increasing capacity at its key Hamilton, Ontario, facilities in order to take advantage of a possible surge in demand from Toyota.
Media reports have said Toyota plans to build a second car plant in southwestern Ontario that could produce 100,000 to 150,000 cars a year by as early as 2008, the report added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTo accommodate such a scenario, Dofasco said it could build a new galvanizing line for about $C200 million ($US160 million) or reconfigure existing ones to ensure the supply, Reuters said.
“At this point there is no specific commitments as a result of the announcement but we are thrilled,” Forstner told the news agency.
