HAMILTON — Canada's steel industry was hit with further layoff news Wednesday as ArcelorMittal Long Products Canada announced it is closing its wire drawing mill in Hamilton.
The decision puts 153 employees out of work and adds to the hundreds of workers in the industry already hit by a combination of tariff concerns, market demand and cheap imports coming into the market.
ArcelorMittal did not mention the 50 per cent tariffs the U.S. has imposed on Canadian steel products in its decision to consolidate its wire operations in Montreal, but did cite the wider pressures.
"Despite our best efforts, the ongoing economic challenges, increased steel imports in Canada, and market conditions made it clear that we needed to reduce our operating footprint," said spokesman Jean-Philippe Grou in a statement.
He said the decision came after the company thoroughly looked at the alternatives, and the focus is now on supporting employees.
Mike Hnatjuk, president of United Steelworkers Local 5328 that represents workers at the mill acknowledged the operation was already facing challenges, including steel dumping from China. He said the U.S. tariffs were "a nail in the coffin" for the mill, but that the company said it could have happened anyway.
"They were saying even without, even if the tariffs weren't here, there is a high possibility that this was going to happen."
He noted the company relies heavily on the automotive sector, which in Canada is also under intense pressure from tariffs.
Hnatjuk, who expects to begin talks with the company regarding a closure agreement next week, said he's been told the company plans to stop operations by the end of the month.
"We have stuff in our collective agreement that we hope that they're going to follow and they're going to offer and are we most definitely going to try to get what's best for all this," he said.
Hamilton Mayor Andrea Horwath said in a statement that she is deeply concerned for the workers affected.
"This is a serious blow to our community, with immediate and lasting impacts on people’s lives," said Horwath.
"This closure underscores the urgent need for action from the federal government."
The Canadian Steel Producers Association has been pushing the federal government to fully reinstate retaliatory tariffs on the U.S. after it doubled tariffs on Canadian steel and aluminum to 50 per cent last week.
Efforts to reverse the tariffs hit a setback Tuesday after a U.S. federal appeals court agreed that U.S. President Donald Trump's sweeping global tariffs will remain in place while a case is heard. The decision extends an emergency stay granted after a lower court found the devastating duties unlawful.
The steel producers group says more than 700 workers had already been laid off since the 25 per cent tariffs were imposed in March.
Along with countering U.S. tariffs, the group is also pushing for the government to put tariffs on steel products that originate in China because of allegations of unfair government support.
ArcelorMittal Long Products Canada chief executive Stéphane Brochu said the company's decision to shut the Hamilton line was necessary to ensure the sustainability its wire drawing business.
"It will allow us to improve our operational efficiency and secure our long-term competitiveness in the demanding wire drawing market," he said in a statement.
ArcelorMittal Long Products Canada has more than 2,000 employees with operations at multiple sites in Quebec.
The company produces more than two million tonnes of steel that is used in such things as rebar for the construction industry and for leaf springs in light and heavy-duty trucks.
This report by The Canadian Press was first published June 11, 2025.
The Canadian Press
