Stelco Holdings Inc. announced on Monday its intention to temporarily shut down a section of its Hamilton facility to secure the company’s future amidst challenges posed by U.S. tariffs impacting its sales. This decision is expected to affect around 500 employees. The company revealed in a memo shared with CBC News that it will indefinitely halt its cold-rolled and coated operations at the Hamilton Works plant, with the process scheduled to commence on October 9.
According to Ron Wells, president of United Steelworkers Local 1005, approximately 350 steelworkers are anticipated to be laid off as a result of this move. The company assured that the shutdown will not hinder its supply of hot-rolled steel products. Stelco’s vice-president of sales, Frederic Fafard, emphasized in the memo that the decision was regrettable but necessary to navigate the challenging market conditions for cold-rolled and coated products caused by ongoing trade disruptions affecting the Canadian steel sector.
The implementation of up to 50% tariffs on certain 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, leading to reduced demand and heightened import levels. Cleveland-Cliffs, an Ohio-based company, acquired Stelco in a $3.4 billion deal in November 2024, pledging to uphold commitments to the workforce.
In response to the layoffs, Industry Minister Mélanie Joly expressed disappointment in Stelco’s decision, highlighting the government’s readiness to provide financial support to sustain operations and protect jobs. Meanwhile, U.S. President Trump lauded a $15 billion investment plan by Minnesota steelmaker Mesabi Metallics for a new plant in Iowa, attributing the move to the success of American tariffs on foreign steel imports.
While Stelco’s operational adjustments in Hamilton pose challenges, the company affirmed that its overall steel output will remain unaffected as it consolidates production at its Lake Erie Works. The Canadian government, stakeholders, and industry experts continue to seek solutions to mitigate the impact of trade tensions and safeguard the interests of Canadian steelworkers.