Stelco Holdings Inc. announced a plan on Monday to temporarily halt some operations at its Hamilton plant to ensure the company’s survival amid pressure from U.S. tariffs impacting its sales. The decision will affect about 500 employees, according to a memo obtained by CBC News. The company will indefinitely idle its cold-rolled and coated operations at the Hamilton Works plant, with the process starting on October 9.
Ron Wells, president of United Steelworkers Local 1005, estimates that approximately 350 steelworkers will face layoffs. The company emphasized that the move will not affect its hot-rolled steel product supply. Stelco’s vice-president of sales, Frederic Fafard, explained in the memo that the decision was necessary due to challenging market conditions for cold-rolled and coated products caused by trade disruptions affecting the Canadian steel industry.
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 exports. Cleveland-Cliffs acquired Stelco for $3.4 billion in November 2024, aiming to maintain the workforce and national interests, as stated by Stelco’s former CEO Alan Kestenbaum.
Industry Minister Mélanie Joly expressed disappointment at the layoffs, mentioning the government’s readiness to support Stelco against the tariff impacts. In response, Cleveland-Cliffs confirmed ongoing discussions with the Canadian government to mitigate the situation for Stelco workers. The company assured that total steel output would not decrease as production consolidates at Lake Erie Works, offering job opportunities to affected Hamilton employees at that location.
Hamilton Mayor Andrea Horwath vowed to uphold commitments made by Stelco and Cleveland-Cliffs to the city’s workers, emphasizing the ongoing fight to protect local jobs. The situation reflects broader concerns about trade tensions between the U.S. and Canada, as industry experts and officials seek solutions to safeguard the steel industry and employment in affected regions.