Stelco Holdings Inc. announced its decision to temporarily halt operations at part of its Hamilton plant to safeguard the company’s viability amidst challenges from U.S. tariffs impacting sales. This move is expected to affect around 500 employees. In a memo disclosed by CBC News, the company detailed the indefinite idling of its cold-rolled and coated operations at the Hamilton Works plant, with the shutdown process commencing on Oct. 9.
United Steelworkers Local 1005 President Ron Wells estimated that approximately 350 steelworkers would face layoffs. Expressing concerns over the lack of clarity on the duration of the layoffs, Wells emphasized the importance of prioritizing seniority in the layoff process to CBC News.
Stelco emphasized that the idling of these operations would not hinder its ability to supply hot-rolled steel products. Frederic Fafard, Stelco’s vice president of sales, underscored the necessity of this action to navigate the challenging market conditions for cold-rolled and coated products due to ongoing trade disruptions affecting the Canadian steel industry.
Cleveland-Cliffs, based in Ohio, completed the acquisition of Stelco for $3.4 billion in cash and stock in November 2024. The company’s then-CEO, Alan Kestenbaum, highlighted the deal’s focus on national interests and recognizing the workforce’s significance.
Amidst these developments, Industry Minister Mélanie Joly expressed disappointment over the layoffs and emphasized the government’s readiness to support Stelco against the impact of U.S. tariffs. She reiterated the commitment to defend Canadian industry, preserve jobs, and secure the supply chain.
In response to the situation, Colin Mang, an economist at McMaster University, attributed the announced layoffs to the trade war with the U.S. and the influx of foreign steel products into Canada. The Canadian Steel Producers Association President, Blair Dickerson, urged the Canadian government and the U.S. to address ongoing trade tensions promptly.
Hamilton Mayor Andrea Horwath vowed to advocate for the fulfillment of commitments made by Stelco and Cleveland-Cliffs to the city’s workers. She reiterated the ongoing efforts to support the affected employees and navigate the challenges posed by trade disputes. Wells criticized the irony of a company endorsing Trump’s tariffs facing business erosion due to the same tariffs.
Meanwhile, U.S. President Trump highlighted a new $15 billion investment plan by Minnesota-based steelmaker Mesabi Metallics as evidence of the success of American tariffs on imported steel, citing a new plant set to commence production in Iowa in 2030.
