Stelco Holdings Inc. announced plans to temporarily shut down a section of its Hamilton plant to safeguard the company’s future amidst pressure from U.S. tariffs impacting its sales. The decision is expected to affect around 500 employees. According to a memo seen by CBC News, the company will halt its cold-rolled and coated operations at the Hamilton Works plant indefinitely, with the process starting on October 9.
Ron Wells, the president of United Steelworkers Local 1005, forecasts that approximately 350 steelworkers will face layoffs. Wells expressed concerns about the uncertainty surrounding the layoffs and emphasized the importance of following seniority protocols during the process.
Stelco assured that the shutdown will not disrupt its supply of hot-rolled steel products. Frederic Fafard, the company’s vice-president of sales, described the move as regrettable but necessary to address the challenges in the cold-rolled and coated products market due to ongoing trade disruptions affecting the Canadian steel industry.
The imposition of up to a 50 percent tariff on specific steel and aluminum imports from Canada by U.S. President Donald Trump in June has significantly impacted Stelco’s market for cold-rolled and galvanized products. Despite efforts by the Canadian government to reduce overall imports, Stelco continues to face intense competition from imports, hindering its ability to navigate the current market crisis.
In a separate development, Cleveland-Cliffs, based in Ohio, acquired Stelco for $3.4 billion in cash and stock in November 2024. This acquisition aimed to prioritize national interests and recognize the importance of the workforce, as stated by Stelco’s former CEO Alan Kestenbaum.
Meanwhile, President Trump highlighted a new $15 billion U.S. investment plan by Minnesota steelmaker Mesabi Metallics, showcasing the success of American tariffs on imported steel. Mesabi Metallics intends to construct a large plant in Iowa, with production slated to commence in 2030. Trump emphasized the effectiveness of the tariffs in revitalizing the domestic steel industry, prompting companies to invest in local production to avoid tariff costs.
United Steelworkers District 6 Director Kevon Stewart emphasized the need for a comprehensive strategy to protect workers in light of the current challenges faced by Canadian workers. Stewart stressed the importance of implementing measures to support workers, such as enhancing benefits and expediting benefit access.