Stelco Idles Hamilton Plant and Lays Off 500 Workers

Stelco Holdings Inc. will indefinitely idle the cold-rolled and coating departments at its Hamilton Works facility starting around October 9, resulting in the layoff of approximately 350 unionized employees in Hamilton and 60 to 80 workers at its Nanticoke facility. The company, owned by U.S.-based Cleveland-Cliffs Inc., attributes the decision to an unsustainable market caused by 50% U.S. tariffs on Canadian steel imposed under Section 232 of the Trade Expansion Act in June 2025.

Stelco reported that demand for these products in its traditional markets declined by nearly 25 percent in Q2 2026 compared to the 2024 quarterly average, including a 10 percent drop in Canadian demand. To maintain total production tonnage, the company will concentrate operations at its Lake Erie Works in Nanticoke, shifting its product mix toward hot-rolled steel.

While Cleveland-Cliffs Inc. claims a significant number of affected workers can be absorbed at the Lake Erie Works plant, United Steelworkers Local 1005 disputes this, stating only 46 positions are available. The layoffs drew criticism from Ontario Premier Doug Ford and Hamilton Mayor Andrea Horwath. Meanwhile, U.S. President Donald Trump characterized the shift as evidence that his protectionist policies are returning manufacturing to the United States, coinciding with his announcement of an $18-billion steel plant investment in Iowa. Following the announcement, shares of Cleveland-Cliffs Inc. fell as much as 9.5% in New York trading.