Dofasco Inc. has signed an agreement to acquire certain assets currently owned by Copperweld Holding Co. of Pittsburgh, Pa.

Dofasco will acquire the assets through a transaction with Atlas Tube Inc. of Harrow, Ont., with Atlas making the initial acquisition and Dofasco immediately purchasing from Atlas the assets related to Copperweld's mechanical tubing and automotive components businesses. Dofasco’s portion of the acquisition is valued at $US177.8 million, subject to closing adjustments.

The assets Dofasco will acquire are used in the manufacture of specialized tubular steel products suitable for niche mechanical and automotive market applications. They include manufacturing facilities in Woodstock, Brantford, London, Brampton and Mississauga, Ont., as well as Shelby, Ohio, and Elizabethtown, Ky.

The Copperweld businesses will be integrated with Dofasco's existing tubular steel business. Dofasco's tubular steel business, established in 1998, is North America's largest supplier of large diameter, thin walled tube for hydroforming applications to the automotive industry. It is also a leading supplier of non-hydroform and fabricated tubular products, with facilities in Ontario, Ohio and Mexico.

"Integration of Copperweld capabilities into Dofasco's existing tube division businesses is expected to accelerate Dofasco's growth to become a North American leader in the supply of specialty tube products for both mechanical and automotive customers", said Don Pether, President and CEO of Dofasco. "This acquisition is a continuation of Dofasco's proven Solutions in Steel^(TM) strategy, and Dofasco's commitment to grow by providing value-added solutions to our customers. It provides an excellent opportunity to increase our product range in the automotive market, and to expand into non-automotive niche markets for tubular products, which will represent approximately 30% of the shipments of the combined businesses."

Mr. Pether added, "Copperweld has been a consistently profitable and established performer with excellent technical capability. It is a well-run private company with highly-skilled employees and we are happy to welcome them to the Dofasco team of tube division employees in Canada, the United States and Mexico."

"This acquisition is consistent with Dofasco's prudent financial approach to making growth investments that return in excess of the company's cost of capital over the business cycle. This investment will be accretive to earnings following the completion of a transition process that will commence immediately after the closing of the transaction," concluded Mr. Pether.

Closing of the transaction is subject to customary conditions and regulatory approvals, and is expected to occur in the fourth quarter of 2005.

Dofasco is a leading North American steel solutions provider. Product lines include hot rolled, cold rolled, galvanized, Extragal^(TM), Galvalume^(TM) and tinplate flat rolled steels, as well as tubular products, laser-welded blanks and Zyplex^(TM), a proprietary laminate. Dofasco's wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries.