The Merger of Stelco
... bring together primary and secondary producers of steel. The primary producers of material - that is, those companies that made unfinished steel - were competing with U.S. suppliers for sales. The secondary mills - where the steel is finished into its final shape - had previously imported their primary materials from the U.S. They had faced uncertainty with quality and supply from their U.S. suppliers. The government of the Dominion of Canada was encouraging Canadian companies to seek Canadian sources of iron. The next logical step would be for the primary and secondary companies to seek each other out. In April, 1910, Aitken and representatives of the five above companies met to discuss the merger. The group eventually reached an agreement, arranged a board of directors, and acquired a capital of $25 million from outside investors. The goal of the union was to reduce administrative expenses and to create an economy in the purchase of supplies and material. (Interesting note: The company was originally to be called "Canad...