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The Canadian Connection

THE CANADIAN CONNECTION

1989: Canada Pipe Company is formed in 1989 when McWane Inc. acquires the ductile iron assets of Canron Inc, of Hamilton, the only ductile iron pipe plant in Canada. Canada Pipe Company is a wholly-owned subsidiary of McWane Inc.

1989: Not long after Canada Pipe Company is created, McWane gets in touch with competitor U.S Pipe and Foundry. Between late 1989 and 1993, top executives from McWane and U.S Pipe meet on several occasions. McWane wants U.S Pipe to stop selling ductile iron pipe in Canada. McWane threatens to start a price war in Northeastern United States market if US Pipe does not agree to exit the Canadian market. U.S Pipe agrees to end their contract with Louisbourg Construction of Montreal, their exclusive distributor of ductile iron pipe in Canada. (read more details about the secret meetings)

1990: Clow Canada, a division of Canada Pipe, is formed upon Canada Pipe’s acquisition of the shares of Concord-Daigle Inc. Concord-Daigle was a Quebec fire hydrant manufacturer.

1990: Clow Canada also purchases the McAvity division of Crane Canada Ltd. T. McAvity and Sons Ltd. was sold to Crane Canada Ltd. in 1960. It was a New Brunswick company that had made its first fire hydrants in 1903 and sold it to municipalities all across Canada. Still today, McAvity hydrants can be found in many Canadian towns.

1993: November 10 - U.S Pipe and Foundry contacts the (U.S) Bureau of Competition Policy and the US federal department of Justice to tell them about their agreement with McWane (Canada Pipe) to lessen competition in Canada. Louisbourg had never agreed to end its 5-year contract. Soon, it will become a joint investigation with the Canadian Competition Bureau.

1995: Bibby Ste-Croix Foundry– still a Canadian owned company- files a complaint against Clow Canada at the Canadian Competition Bureau for anti-competitive practices.

1995: Canada Pipe Ltd is fined $2.5 million for one conspiracy charge under section 45 (1) (c) of the Competition Act ., Canada Pipe is fined, even though conspiracy is unsuccessful. Canada Pipe had tried to “prevent or unduly lessen” competition in trying to force US Pipe and Foundry to stop its shipping to Louisbourg Construction. At the time, it was the highest fine ever paid in Canadian history. (read more details about the investigation)

1997: Canada Pipe Company Ltd acquires in one transaction: (source: Industry Canada):

* Bibby Ste-Croix Foundries Inc. Ste-Croix, Quebec;
*Bibby Waterworks Corp., Hamilton, Ontario
*Bibby Foundry Ltd, Oakville , Ontario
*Titan Foundry Limited , B.C
*Associated Foundry Ltd, Surrey, B.C
*Coast Couplings Ltd. Cambridge, Ontario
*Gestion Financière Grand-Mère
*Gestion Financière Laperle, St-Ours, Quebec

1997: After Bibby Ste-Croix ‘s acquisition by McWane, Bibby Ste-Croix drops its complaint to Competition Bureau against Clow Canada.

1997: Cremco Supply Ltd and Cremco Couplings (B.C) sue Canada Pipe Company. Cremco, a company specializing in pipe couplings, alleges that it owns a patent for a soil pipe coupling device and that Canada Pipe produces and sells a similar device without its permission.

1998: Canada Pipe Company acquires Cremco Supply Ltd and Cremco Couplings.

1998: Canada Pipe closes down its Hamilton plant and becomes the exclusive distributor of ductile iron pipe made in McWane’s U.S plants. No more ductile iron pipes are manufactured in Canada.

2000: Canada Pipe buys Domestic Foundry Ltd, Windsor, Ontario. Now closed.

2000: Vandem Industries Inc, a new Canadian manufacturer of cast iron pipes files a complaint with the Canadian Competition Bureau against Bibby Ste-Croix. Vandem argues that Bibby has engaged in anti-competitive practices that could lead to a monopoly. It is the third complaint about one of McWane’s companies in Canada.

2002: November 1 - The Competition Bureau announced that it has filed an application with the Competition Tribunal for an order prohibiting Canada Pipe Company Ltd. from engaging in anti-competitive acts through its Bibby Ste-Croix Division. (see the application)

2002: December 24 - Canada Pipe puts forth a notice of motion to the Competition Tribunal to stay the application of the Competition Bureau until the Competition Bureau discloses all documents and information relevant to the application.

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the fifth estate: A Toxic Company

The McWane Inc Story - The Canadian Connection - The Original Documents
After the Story - Resources


For more reading on this story visit the New York Times and PBS Frontline.

Originally Broadcast January 8, 2003 on the fifth estate
Updated on March 3, 2004

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