Stelco Holdings Inc. announced its intention to halt operations at a portion of its Hamilton plant to safeguard the company’s future amidst dwindling sales due to U.S. tariffs. The move is expected to affect around 500 employees. The decision, outlined in a memo obtained by CBC News, entails the indefinite suspension of cold-rolled and coated operations at the Hamilton Works plant, with the winding-down process commencing on October 9.
United Steelworkers Local 1005 President Ron Wells estimates that approximately 350 steelworkers will face layoffs. The company assured that its capacity to supply hot-rolled steel products will not be compromised. Stelco’s vice-president of sales, Frederic Fafard, emphasized the necessity of this action to navigate the challenging market conditions for cold-rolled and coated products, exacerbated by trade disruptions affecting the Canadian steel industry.
The implementation of up to 50% tariffs on specific steel and aluminum imports from Canada by U.S. President Donald Trump in June has significantly contracted Stelco’s market for cold-rolled and galvanized products. Following Cleveland-Cliffs’ acquisition of Stelco for $3.4 billion in November 2024, concerns have arisen regarding the company’s commitment to maintaining the existing number of unionized employees.
In response to the layoffs, Industry Minister Mélanie Joly expressed disappointment over Stelco’s decision, highlighting the government’s readiness to provide financial support to sustain operations and protect jobs. Meanwhile, a new $15 billion U.S. investment plan by Minnesota-based steelmaker Mesabi Metallics in Iowa, underpinned by American tariffs on imported steel, has stirred apprehension among Canadian steelworkers.
Hamilton Mayor Andrea Horwath vowed to advocate for the fulfillment of commitments made by Stelco and Cleveland-Cliffs executives to the city’s workers. Despite the challenging tariff landscape, stakeholders underscore the imperative of finding solutions to safeguard Canadian industry and maintain a competitive steel sector.