Christian Paradis,
Canada's Minster of Industry announced Monday that the Canadian Government's court case against Pittsburgh, Pennsylvania-based
US Steel has been settled outside of court. The Federal Government has been in a legal battle with
US Steel over two-year-plus years seeking fines from the steelmaker for its job cuts in 2009. Paradis said, "When U.S Steel acquired Stelco Inc. in 2007, it committed to a series of undertakings to demonstrate a likely net benefit to
Canada. In July 2009, the Government filed an application in Federal Court for an order requiring
US Steel to comply with its undertakings on
production and employment. It did so because my predecessor was not satisfied that
US Steel was honoring its commitments."
In return for dropping the case, US Steel has agreed to continue steelmaking operations in Canada at both the Lake Erie and Hamilton plants until 2014 and make at least $50 million in capital investments to main the Canadian facilities by December 2015.
Additionally, US Steel will make $3 million in financial contributions toward community and educational programs in Hamilton and Nanticoke, with the first $1 million expected by early February 2012.