Stelco Holdings Inc. announced its intention to temporarily halt operations at part of its Hamilton plant to safeguard the company’s future amidst reduced sales due to U.S. tariffs. This decision is expected to affect around 500 employees. The company plans to cease its cold-rolled and coated operations at the Hamilton Works plant, with the wind-down process commencing on October 9, according to a memo obtained by CBC News. Ron Wells, president of United Steelworkers Local 1005, estimates that approximately 350 steelworkers will face layoffs. The company emphasized that this move will not impact its ability to provide hot-rolled steel products.
Stelco’s Vice President of Sales, Frederic Fafard, stated in the memo that the decision was necessary to tackle the challenges in the market for cold-rolled and coated products caused by trade disruptions affecting the Canadian steel industry. The company’s acquisition by Cleveland-Cliffs for $3.4 billion in November 2024 aimed to support national interests and acknowledge the importance of the workforce.
In response to the layoffs, Industry Minister Mélanie Joly expressed disappointment, highlighting the government’s readiness to offer financial assistance to sustain operations and preserve jobs. The announcement comes amidst U.S. President Trump’s endorsement of a new $15 billion investment plan by steelmaker Mesabi Metallics in Iowa, attributing it to the effectiveness of American tariffs on imported steel.
Hamilton Mayor Andrea Horwath vowed to uphold the commitments made by Stelco and Cleveland-Cliffs to the city’s workers. The ongoing trade tensions between the U.S. and Canada are seen as a significant challenge, with stakeholders emphasizing the need for solutions to support the domestic steel industry and protect Canadian jobs.