Stelco Holdings Inc. has announced its intention to temporarily shut down a section of its Hamilton plant to safeguard the company’s viability amidst escalating U.S. tariffs affecting its sales. The decision is expected to impact around 500 employees.
According to a memo disclosed by CBC News, the company will cease its cold-rolled and coated operations at the Hamilton Works plant, with the process commencing on October 9 and continuing indefinitely. United Steelworkers Local 1005 President, Ron Wells, approximates that approximately 350 steelworkers will face layoffs due to this move.
Wells expressed concerns about the impending layoffs, emphasizing the need for clarity on the selection criteria and duration of the workforce reduction, especially with the holiday season approaching. Stelco assured that the shutdown will not hinder its hot-rolled steel product supply capabilities.
Stelco’s Vice President of Sales, Frederic Fafard, highlighted the necessity of this decision to secure the company’s sustainability in the face of challenging market conditions for cold-rolled and coated products, exacerbated by the continuous trade disruptions impacting the Canadian steel sector.
The imposition of up to a 50% tariff on select steel and aluminum imports from Canada by U.S. President Donald Trump through an executive order in June has significantly constricted Stelco’s market for cold-rolled and galvanized products. Fafard acknowledged that despite efforts by the Canadian government to curb imports, the persistent high levels of imported products have hindered Stelco’s ability to navigate the market turmoil successfully.
The company is taking proactive measures to navigate the ongoing uncertainties, and further updates are expected regarding this development.
