Canada Threatens Stelco With Forced Asset Sale Over Layoffs

Industry Minister Melanie Joly announced that the federal government expects a resolution within days regarding a standoff with Stelco Holdings Inc. over plant closures and layoffs in Ontario. The conflict began after Stelco halted production at its Hamilton plant to concentrate operations at Lake Erie Works in Haldimand, citing pressure from U.S. tariffs.

The federal government alleges that Stelco committed multiple breaches of commitments made under the Investment Canada Act. Joly warned that the company must maintain strategic capacity and jobs in Canada or face financial penalties and the potential forced divestiture of all its Canadian assets. She stated that the government will apply the full force of the law to ensure operational capacity remains.

Approximately 90 workers received notices last week, with the first layoffs taking effect on Sunday. Further cuts are expected over the next three weeks as the company shifts its production focus.