Stelco Holdings Inc. announced its decision to temporarily halt operations at part of its Hamilton plant to safeguard the company’s viability amid pressure from U.S. tariffs impacting its sales. The move is expected to affect around 500 employees. According to a memo seen by CBC News, Stelco will cease its cold-rolled and coated operations at its Hamilton Works plant indefinitely, with the shutdown process commencing on October 9.
Ron Wells, the president of United Steelworkers Local 1005, anticipates that approximately 350 steelworkers will face layoffs. He expressed concerns over the lack of clarity on the duration of these layoffs and emphasized the need for a fair process based on seniority. Stelco assured that the suspension of these operations will not hinder its supply of hot-rolled steel products.
Frederic Fafard, Stelco’s vice-president of sales, explained in the memo that the decision was regrettable but necessary to sustain the company amidst challenging market conditions for cold-rolled and coated products due to ongoing trade disruptions affecting the Canadian steel industry. This predicament has been exacerbated by the impact of the tariffs imposed by U.S. President Donald Trump on specific steel and aluminum imports from Canada.
Cleveland-Cliffs, based in Ohio, acquired Stelco in a $3.4 billion deal in November 2024. The company assured that the total steel output will not be affected by the temporary halt in Hamilton operations as production will be consolidated at its Lake Erie Works. Affected employees are expected to be offered job opportunities at the Lake Erie Works facility.
Industry Minister Mélanie Joly expressed disappointment over the layoffs and criticized Stelco’s decision, highlighting the government’s willingness to provide financial support to sustain operations and protect jobs. Meanwhile, U.S. President Trump celebrated a new $15 billion investment plan by steelmaker Mesabi Metallics as a testament to the success of American tariffs on imported steel, raising concerns among Canadian steelworkers.
Hamilton Mayor Andrea Horwath vowed to advocate for the commitments made by Stelco and Cleveland-Cliffs to the workers in her city, emphasizing that the fight is not over amidst the challenges posed by trade disputes and the impact of tariffs on the steel industry.