Stelco to idle Hamilton cold-rolling; hundreds of jobs at risk

Stelco Holdings Inc. said Monday it will indefinitely idle cold-rolled and coated finishing operations at its Hamilton Works plant, citing U.S. tariffs and a contracted market for those products. Wind-down is expected to begin around Oct. 9. The company said as many as 500 employees could be affected; United Steelworkers Local 1005 president Ron Wells estimated about 350 layoffs.

In a customer memo, Stelco vice-president of sales Frederic Fafard called the step necessary to help ensure the company’s survival in what he described as an unsustainable market for cold-rolled and coated steel caused by ongoing trade disruptions. Cleveland-Cliffs Inc., which owns Stelco, said total steel tonnage would not fall as production concentrates at Lake Erie Works in Nanticoke, Ont., with some Hamilton workers expected to be offered roles there. Wells said the union had been told 46 positions would be offered.

Industry Minister Mélanie Joly said Ottawa had offered financial support to sustain operations and protect jobs and called the company’s decision to proceed with layoffs extremely disappointing. U.S. Section 232 tariffs of up to 50 per cent on certain Canadian steel have squeezed export opportunities while import competition in Canada remains elevated for some flat products.