U.S. Steel to Idle Two Canadian Facilities, Affecting 1500
The United States Steel Corp., the largest US based steel maker, announced Tuesday that it will temporily idle two Ontario facilities, affecting 1,500 employees in Hamilton and Nanticoke, as demand suffers from the weak economic climate.
These cuts come on top of 684 layoffs delivered at US Steel Canada, bringing the total job losses to 2,190. Salaried staff were not affected.
The Canadian plants - bought by US Steel 16 months ago, will not resume production until market conditions improve.
An Ontario government official said executives from U.S. Steel delivered the grim news Tuesday afternoon to Premier Dalton McGuinty's chief of staff, Peter Wilkinson.
“This is brutal news for the people of Hamilton,” Ontario Minister of Economic Development Michael Bryant told reporters last night.
“It has absolutely nothing to do with the new stimulus package [introduced by U.S. President Barack Obama that might involve potential steel production in the United States,” he said, adding that the company is also idling plants in Illinois, Michigan and Minnesota.