Stelco Holdings Inc. announced on Monday its intention to temporarily shut down a portion of its Hamilton facility to safeguard the company’s viability amid declining sales due to U.S. tariffs. This decision is expected to affect around 500 employees. The company revealed in a memo obtained by CBC News that it will indefinitely halt its cold-rolled and coated operations at the Hamilton Works plant, with the process starting on October 9.
Ron Wells, the president of United Steelworkers Local 1005, estimates that approximately 350 steelworkers will face layoffs. He expressed concerns over the lack of clarity regarding the duration of these layoffs and emphasized the need for a seniority-based approach in the layoff process.
Stelco assured that the shutdown would not impact its capacity to provide hot-rolled steel products. According to Frederic Fafard, the company’s vice president of sales, the decision was deemed necessary to address the challenging market conditions for cold-rolled and coated products, exacerbated by ongoing trade disruptions affecting the Canadian steel industry.
The company’s acquisition by Cleveland-Cliffs in a $3.4 billion deal in November 2024 was highlighted as a move to uphold national interests and support the workforce. Despite the layoffs, Stelco confirmed that its overall steel output would remain unaffected as production consolidates at its Lake Erie Works, with job opportunities being extended to impacted Hamilton employees.
Industry Minister Mélanie Joly criticized the layoffs, mentioning that the Canadian government had offered financial support to Stelco to mitigate the impact of U.S. tariffs, which was declined by the company. Meanwhile, U.S. President Trump praised the investment plans of a Minnesota-based steelmaker, citing it as a success of American tariffs on imported steel.
Hamilton Mayor Andrea Horwath vowed to advocate for the fulfillment of commitments made to workers by Stelco and Cleveland-Cliffs executives. The mayor emphasized that the fight to protect jobs and secure the supply chain was far from over.