At the outbreak of the Federation/Dominion War in 2373, a task force comprised of Star Fleet and Klingon forces attacked and destroyed the shipyards, while Dominion forces were focused on attacking Deep Space 9. In choosing to launch the attack on the Torros III shipyards, the Federation chose not to send reinforcements to Deep Space 9, which was lost to the Dominion.
In this entirely punitive expedition, the shipyards were completely destroyed in the attack. This was both the first action either the Federation or the Klingons had undertaken against the Dominion and the first operation that they had conducted jointly since the Khitomer Accords were reinstated earlier that year.
However, prior to the station's loss, Star Fleet, working with Bajoran agents, established a minefield at the mouth of the Bajoran Wormhole which severed the Dominion supply line to Dominion territory in the Gamma Quadrant.
The destruction of the shipyards at Torros III, together with the mining of the Bajoran wormhole, was an early blow to Dominion forces in the Alpha Quadrant, from which it would take months for the Dominion to recover.
- Information on Torros III taken from http://www.memory-alpha.org.