ArcelorMittal Dofasco, located in Hamilton, Ontario, Canada, has stated that it will cut back production in the second half of the year due to a weakening North American customer base and challenging economic times.
In statements to the press, ArcelorMittal Dofasco has said that although the first half of the year was very strong for the company, the weakening that started in the third quarter has been significant and that cutting production is the most responsible way to respond.
Dofasco said in a letter to customers that the cutbacks will include reducing output in its steelmaking and finishing operations, cutting back on overtime and reducing its casual employee base. Full time jobs will not be affected at this time, it said.
Dofasco says that it will still proceed with its previously announced $180 million investments that will include the implementation of pulverized coal injection (PCI) and the restart of he No. 3 blast furnace, both of which are scheduled for 2009.