Cleveland-Cliffs has declared that Stelco experienced its most robust performance in the third quarter of this year since being acquired by the U.S. firm in 2024. However, the steelmaker is facing layoffs in Hamilton and Nanticoke, with notices being issued earlier this month.
Lourenco Goncalves, CEO of Cleveland-Cliffs, expressed satisfaction with Stelco’s performance, attributing it to the significant improvement in the Canadian hot-rolled market. Despite this success, Goncalves highlighted the need for the Canadian government to address the oversupply issue in the galvanized steel market.
Stelco Holdings Inc. announced plans on September 28 to idle a section of its Hamilton plant to safeguard the company amid pressure from U.S. tariffs impacting sales. Layoffs are anticipated, with 333 expected in Hamilton and up to 50 at the Lake Erie Works in Nanticoke.
During an earnings call, Goncalves praised President Donald Trump’s trade policies, which he believes are fostering an environment conducive to investment and domestic production growth. Goncalves emphasized the positive impact of the Canadian government’s tariff-rate quota system on the hot-rolled steel business.
The federal government has reminded Cleveland-Cliffs of its commitment to maintain employment levels as of 2024 through 2029. Industry Minister Mélanie Joly emphasized the importance of honoring these commitments despite market challenges.
Goncalves reiterated that the layoffs are temporary until a trade agreement is reached between Canada and the U.S. He called for government action to restrict or reduce the importation of galvanized steel to enable the rehiring of laid-off workers swiftly.
The government is exploring legal options under the Investment Canada Act in response to the layoffs. Ron Wells, president of United Steelworkers Local 1005, criticized the messaging from Cleveland-Cliffs, highlighting the disconnect between the company’s profitability and its decision to shut down certain departments. Wells urged Minister Joly to enforce the Investment Canada Act as promised.