Stelco Holdings Inc. says it will “idle finishing operations” at their Hamilton Works facility in the face of “market uncertainty.”
In a statement on Monday afternoon, Stelco says the decision will impact up to 500 of its employees, noting the imposition of U.S. tariffs has significantly shrunk the market for its cold rolled and galvanized products.
“In the face of continued market uncertainty and prolonged injury to Stelco’s business resulting largely from steel imports into Canada, we have been forced to make this very difficult decision that will impact as many as 500 Stelco employees,” said a Stelco spokesperson.
“We will continue to evaluate the status of our operations should conditions improve.”
Stelco said that while actions taken by the federal government have reduced imports, volumes remain too high for the company to bridge the gap the trade tensions have created in the market.
The company says the indefinite idle is part of a plan to concentrate production at its Lake Erie facility in Nanticoke, Ont.
Pat Persico, a spokesperson for parent company Cleveland-Cliffs Inc., says Stelco’s product mix will change but that the tonnage of steel production will not be affected.
Persico added that the company expects a “significant” number of employees affected by the indefinite idle at its Hamilton facility to be absorbed by its Lake Erie Works operations.
U.S.-based Cleveland-Cliffs Inc. acquired Stelco in 2024.
Stelco is the latest steel manufacturer laying off employees in response to the challenges seen by U.S. tariffs.
Last December, Algoma Steel announced plans to lay off more than 1,000 workers, about a third of its total head count. Alongside the layoffs, it accelerated a transition to new equipment in response to U.S. tariffs.
In June of last year, ArcelorMittal Long Products Canada announced it was closing its wire drawing mill in Hamilton, leaving 153 employees out of work.
-With files from The Canadian Press
