Stelco Holdings Inc. says it plans to idle part of its Hamilton plant in order to “ensure the survival” of the company, as U.S. tariffs squeeze its sales.
Stelco says the decision will impact up to 500 employees.
In a memo obtained by CBC News on Monday, the company says it will indefinitely idle its cold-rolled and coated operations at its Hamilton Works plant, with operations set to begin winding down on Oct. 9.
Ron Wells, president of United Steelworkers Local 1005, estimates 350 steelworkers will be laid off. He says he was briefed on the situation in a meeting with the company on Monday morning.
“Obviously, we got to meet with the company, and find out who’s getting laid off, [and] make sure it’s done by seniority,” Wells told CBC News on Monday. “Christmas ain’t that far away, and we have no idea the duration of these layoffs … People are concerned. I don’t blame them.”
The company says this will not impact its ability to supply hot-rolled steel products.
“This is an unfortunate but necessary action to help ensure the survival of Stelco in what has become a challenging and unsustainable market for cold-rolled and coated products caused by the ongoing and sustained trade disruptions impacting the Canadian steel industry,” Stelco vice-president of sales Frederic Fafard stated in the memo.
U.S. President Donald Trump signed an executive order in June applying an up to 50 per cent tariff to certain steel and aluminum imports from Canada.Â
“Stelcoâs market for cold-rolled and galvanized products has contracted significantly, while import penetration for these products remains at heightened levels,” Fafard added in the memo.
“While the measures taken by the federal government in Canada have served to reduce imports into Canada overall, import volumes remain at levels that prevent Stelco from being able to bridge the gap in the market created by the trade crisis.”
Ohio-based Cleveland-Cliffs acquired Hamilton-based Stelco in a $3.4-billion Cdn cash-and-stock deal that closed in November 2024. In a news release announcing the deal, Stelco’s then-CEO Alan Kestenbaum stated the transaction “keeps national interests at the forefront and recognizes the importance of the workforce.”
“We’re very disappointed,” Wells said. “In particular, when Cliffs bought us in the fall of 2024, they made commitments. One of those commitments was to maintain the same number of unionized employees.”
