Stelco Holdings Inc. says it will indefinitely idle part of its Hamilton Works plant, a move the company describes as necessary to ensure its survival as U.S. tariffs continue to squeeze demand for its products.
The company says the decision could affect up to 500 employees. In a memo obtained by CBC News, Stelco said it will wind down its cold-rolled and coated operations at the Hamilton plant starting Oct. 9, though the shutdown will not affect its ability to supply hot-rolled steel products.
Ron Wells, president of United Steelworkers Local 1005, estimated that around 350 steelworkers will be laid off. He said the union still needs to meet with the company to determine who will be affected and to ensure layoffs are carried out by seniority.
“People are concerned. I don’t blame them,” Wells said, noting the timing so close to the holidays adds to workers’ unease, given there is no clear timeline for how long the layoffs will last.
Tariffs Cited as Driving Force
Stelco vice-president of sales Frederic Fafard said in the memo that the move was an unfortunate but necessary step to protect the company amid what he called an unsustainable market for cold-rolled and coated steel products, caused by ongoing trade disruptions affecting the Canadian steel industry.
The layoffs follow an executive order signed by U.S. President Donald Trump in June that applies tariffs of up to 50 per cent on certain steel and aluminum imports from Canada. Fafard said Stelco’s market for cold-rolled and galvanized products has contracted significantly, while import penetration in those categories remains elevated.
Company Says Domestic Measures Not Enough
Fafard said that while measures taken by the federal government in Canada have helped reduce overall imports into the country, import volumes remain high enough to prevent Stelco from closing the gap in the market created by the trade dispute.
Stelco has not indicated how long the idling of the cold-rolled and coated operations will last.
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