Stelco Holdings Inc. announced on Monday its intention to temporarily halt operations at a section of its Hamilton facility to safeguard the company’s future amidst challenging market conditions caused by U.S. tariffs. The decision is expected to affect around 500 employees.
According to a memo shared with CBC News, Stelco will indefinitely suspend its cold-rolled and coated operations at the Hamilton Works plant, with the winding-down process set to commence on October 9. Ron Wells, the president of United Steelworkers Local 1005, anticipates that approximately 350 steelworkers will face layoffs. He expressed concerns about the uncertainty surrounding the duration of the layoffs and their impact, especially close to the holiday season.
Stelco clarified that the move will not hinder its ability to supply hot-rolled steel products. Frederic Fafard, the company’s vice president of sales, emphasized 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.
The imposition 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. Despite efforts by the Canadian government to reduce imports, import levels remain high, hindering Stelco’s ability to address the market gap created by the trade crisis.
Following Cleveland-Cliffs’ acquisition of Stelco in a $3.4 billion deal in November 2024, the company assured the maintenance of unionized employee levels. However, the recent layoffs have sparked disappointment among union representatives. Stelco and Cleveland-Cliffs have committed to working together to minimize the impact on Canadian workers.
In response to the situation, Industry Minister Mélanie Joly expressed disappointment over the layoffs and reiterated the government’s readiness to support Stelco. Meanwhile, U.S. President Trump hailed a new $15 billion investment plan by a Minnesota-based steelmaker, citing it as evidence of the success of American tariffs on imported steel.
Canadian officials and industry leaders have emphasized the urgency of addressing the ongoing trade tensions between Canada and the U.S. to protect Canadian steelworkers and ensure the competitiveness of the domestic steel industry. Hamilton Mayor Andrea Horwath pledged to advocate for the fulfillment of commitments made by Stelco and Cleveland-Cliffs to the city’s workers.
