Stelco Holdings Inc. announced its intention to halt operations at a section of its Hamilton plant to safeguard the company’s viability amid pressures from U.S. tariffs affecting its sales. The decision is anticipated to impact around 500 employees. The company shared in a memo obtained by CBC News that it will indefinitely idle its cold-rolled and coated operations at its Hamilton Works plant, with the process beginning on October 9.
According to Ron Wells, president of United Steelworkers Local 1005, approximately 350 steelworkers are expected to face layoffs. He expressed concerns about the lack of clarity regarding the duration of the layoffs and the impact on employees as the holiday season approaches. Stelco assured that the idling of operations will not affect its capacity to provide hot-rolled steel products.
Frederic Fafard, Stelco’s vice-president of sales, emphasized in the memo that the decision was regrettable but necessary to address the challenges in the market for cold-rolled and coated products caused by ongoing trade disruptions affecting the Canadian steel industry. Stelco was acquired by Ohio-based Cleveland-Cliffs in a $3.4 billion deal in November 2024.
The impact of the tariffs imposed by U.S. President Donald Trump on Canadian steel and aluminum imports has been significant, with Stelco experiencing a substantial contraction in its market for certain products. Despite efforts by the Canadian government to reduce overall imports, import levels remain high, hindering Stelco’s ability to navigate the market challenges.
Industry Minister Mélanie Joly expressed disappointment over the layoffs, stating that the government had offered support to Stelco to mitigate the impact of the tariffs. Meanwhile, Stelco’s decision to proceed with layoffs despite the support offered was criticized by Joly, who emphasized the commitment to defend Canadian industry and safeguard jobs.
In response to the layoffs, Stelco confirmed that it would consolidate production at its Lake Erie Works, with affected employees being offered job opportunities at that location. The company aims to absorb a significant number of the impacted employees at Lake Erie Works.
Hamilton Mayor Andrea Horwath vowed to advocate for Stelco and Cleveland-Cliffs to honor their commitments to the city’s workers. She emphasized that the fight to protect jobs and industry is ongoing, despite the challenges posed by trade tensions and tariffs.