Stelco Holdings Inc. plans to temporarily shut down part of its Hamilton steel plant, a move the company says is necessary to protect its long-term survival as US tariffs and trade disruptions put pressure on its business.
The company said the decision could affect up to 500 workers. Its cold-rolled and coated steel operations at Hamilton Works are expected to begin winding down on October 9 and will remain idle indefinitely.
Ron Wells, president of United Steelworkers Local 1005, estimates that around 350 unionized steelworkers could be laid off. He said workers are worried because they do not yet know how long the layoffs will last.
Stelco said the shutdown will not affect its ability to continue supplying hot-rolled steel products. The company attributed the decision to a difficult market for cold-rolled and coated steel, with continuing trade disruptions and increased imports reducing demand for its products.
The situation follows US President Donald Trump’s decision to impose tariffs of up to 50% on certain steel and aluminum imports from Canada. Stelco said its market for cold-rolled and galvanized products has contracted considerably while imports remain high.
Stelco was acquired by Ohio-based Cleveland-Cliffs in a C$3.4 billion deal that was completed in November 2024. Union representatives said they were disappointed by the layoffs, noting that the acquisition had included commitments regarding employment levels.
Meanwhile, Trump promoted a planned $15 billion steel investment in Iowa, saying US tariffs were encouraging companies to expand production domestically. Canadian steelworkers’ representatives warned that the developments could put additional pressure on workers and called for stronger measures to protect affected employees.