Stelco Inc., the Canadian unit of US based steelmaker Cleveland-Cliffs Inc., has announced that it will indefinitely idle its cold rolled and coated steel operations in Hamilton, Ontario. The company will concentrate production at its Lake Erie Works in Nanticoke, Ontario.
According to an internal memo acquired by the Canadian Broadcasting Corporation (CBC), the Hamilton operations will begin winding down on October 9. Up to 500 employees will be affected. The company said Hamilton employees will be offered jobs at Lake Erie Works.
However, Ron Wells, president of United Steelworkers Local 1005, estimates 350 steelworkers will be laid off. He says he was briefed on the situation in a meeting with the company on Monday morning.
Stelco said US tariffs have significantly reduced the market for its cold rolled and galvanized products. Demand for these products in its traditional markets declined by almost 25 percent in the second quarter of 2026 compared to the 2024 quarterly average, including a 10 percent decline in Canada. The company added that although Canadian government measures have reduced imports, import volumes remain too high for Stelco to bridge the gap in the market created by the trade crisis.
Cleveland-Cliffs said Stelco's product mix will change, but its steel production tonnage will not be affected.
Ohio based Cleveland-Cliffs acquired Hamilton based Stelco in a C$3.4 billion cash and stock deal that closed in November 2024.
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