Stelco Holdings Inc. is set to halt operations at a section of its Hamilton plant to safeguard the company’s viability amid pressures from U.S. tariffs impacting its sales. The move is expected to affect around 500 employees. According to a memo obtained by CBC News, the company will indefinitely shut down its cold-rolled and coated operations at the Hamilton Works plant, with the process beginning on Oct. 9.
United Steelworkers Local 1005 President, Ron Wells, anticipates that approximately 350 steelworkers will face layoffs due to this decision. He mentioned being briefed on the matter during a meeting with the company on Monday, expressing concerns about the uncertainty surrounding the duration of these layoffs and their impact, especially with the holiday season approaching.
Stelco clarified that the idling of operations will not hinder its ability to provide hot-rolled steel products. Frederic Fafard, Stelco’s vice-president of sales, emphasized in the memo that the action is regrettable but necessary to navigate the challenging market conditions for cold-rolled and coated products, influenced by persistent trade disruptions affecting the Canadian steel industry.
The imposition of tariffs by U.S. President Donald Trump in June, with rates as high as 50% on specific steel and aluminum imports from Canada, has significantly shrunk Stelco’s market for cold-rolled and galvanized products. Despite efforts by the Canadian government to curb imports, Stelco continues to face substantial import competition that hampers its ability to address the market imbalances resulting from the trade uncertainties.
Cleveland-Cliffs, based in Ohio, acquired Stelco, based in Hamilton, in a $3.4 billion cash-and-stock deal that was finalized in November 2024. Following the acquisition, Stelco’s then-CEO Alan Kestenbaum assured that the deal prioritized national interests and acknowledged the importance of the workforce, a commitment that Wells highlighted as being unfulfilled post-acquisition.