Cleveland-Cliffs has reported that Stelco had its most robust performance in the third quarter this year since being acquired by the U.S. company in 2024. Despite this success, a significant number of employees at the steelmaker’s facilities in Ontario, specifically Hamilton and Nanticoke, are facing layoffs. The CEO of Cleveland-Cliffs, Lourenco Goncalves, highlighted the strength of Stelco’s third-quarter performance, attributing it to the improved Canadian hot-rolled market. Goncalves emphasized the need for additional action from the Canadian government to address the overcapacity issue in the galvanized steel market.
Stelco Holdings Inc. announced plans to idle a portion of its Hamilton plant to secure the company’s viability amidst challenges posed by U.S. tariffs affecting its sales. Layoffs are anticipated, with 333 expected in Hamilton and up to 50 at the Lake Erie Works in Nanticoke, according to union representatives.
Goncalves commended President Donald Trump’s trade policies during an earnings call, stating that they are fostering an environment conducive to investments and domestic production growth. The imposition of tariffs on certain steel and aluminum imports from Canada by Trump earlier in the year has led to favorable pricing conditions for steel sales.
The success of the hot-rolled steel business was noted to be closely linked to Canada’s tariff-rate quota system by Goncalves. The company is committed to maintaining the employment levels set during the acquisition till 2029. However, Goncalves reiterated that the current layoffs are temporary until a trade agreement is reached between Canada and the U.S.
Regarding the layoffs, Goncalves expressed the company’s willingness to recall workers if the importing of galvanized steel into the Canadian market is restricted. He also signaled readiness to engage in legal battles with the Canadian government to uphold the layoff plan.
Minister Mélanie Joly mentioned that the government is evaluating legal actions against Cleveland-Cliffs under the Investment Canada Act. Potential measures could include financial penalties or requiring the company to adhere to its commitments or divest its Canadian assets.
Union representatives criticized the messaging from Cleveland-Cliffs, highlighting the discrepancy between the reported profitability and the ongoing shutdown of certain steel departments. They emphasized the importance of government enforcement of regulations to protect Canadian workers and industries.