Stelco says up to 500 workers could be affected as the company moves to indefinitely idle finishing operations at its Hamilton facilities and concentrate more production at Lake Erie Works in Nanticoke.
The company announced the move Monday, citing the impact of U.S. tariffs and a significant decline in demand for its cold rolled and galvanized steel products.
In a memo to employees, Stelco described the move as “unfortunate but necessary,” saying demand for those products in the markets it traditionally serves declined by almost 25 per cent in the second quarter of 2026 compared with the quarterly average in 2024.
The company says that decline included a 10 per cent drop in Canadian market demand, as customers and manufacturers of steel products have also been affected by the ongoing trade dispute with the United States.
Stelco says federal measures have reduced imports into Canada, but the remaining volumes are still too high for the company to fully overcome the impact of the trade tensions.
The indefinite idling of the Hamilton finishing operations is part of a plan to concentrate production at the company’s Lake Erie Works facility in Nanticoke.
Cleveland-Cliffs, which acquired Stelco in 2024, says the company’s overall steel production tonnage will not be affected by the change, although its product mix will change.
Company spokesperson Pat Persico says a “significant” number of workers affected by the Hamilton shutdown are expected to have opportunities to move to Lake Erie Works in Nanticoke.
“Job opportunities at Lake Erie Works will be offered to Hamilton employees,” Persico said in a statement.
The announcement comes as Canada’s steel industry continues to deal with the effects of U.S. tariffs and weaker demand. Algoma Steel announced plans last year to lay off more than 1,000 workers, while ArcelorMittal Long Products Canada announced the closure of a Hamilton wire-drawing mill affecting 153 employees.
For workers in Norfolk County, the production shift means Lake Erie Works in Nanticoke is expected to play a larger role in Stelco’s operations as the company responds to changing market conditions.
