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U.S. Steel to Idle Two Canadian Facilities, Affecting 1500
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by Blue Crush | March 4, 2009 at 06:18 am
433 views | 56 Recommendations | 9 comments
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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.
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Blue Crush
Toronto, Canada
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Jordan Yerman
Vancouver, British Columbia, Canada
Barry Artiste
Vancouver, Canada
Paschen
Narita, Chiba, Japan
Rhonda J Mangus
North Tonawanda, New York, United States
harringtola
Town-send, Massachusetts, United States
mtammas
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Amy Judd
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Barbara McPherson
Nanaimo, Canada
Most RecentMost Recommended Comments (9)
at 06:35 on March 4th, 2009
Thanks for this, Blue Crush!
at 06:41 on March 4th, 2009
Having sold off all domestic factories does not help Canada now.
at 10:01 on March 4th, 2009
I guess I can't blame the US owners for abandoning the Canadian plants. Who should I blame? Maybe the government of the time should have stopped the sale a few months ago. We're seeing similar things happening in our forestry industry -- American ownership -- only regard for profits. And just forget about the auto industry. We nearly lost our aerospace industry to foreign ownership. Thank goodness that one was stopped.
at 10:15 on March 4th, 2009
Why were the plants sold in the first place? Why wasn't the new buyer Canadian? When will the plants be reopened?
at 18:35 on March 4th, 2009
Roy, this was the last of our steel companies to go to foreigners - they'd just come out of bankruptcy protection. The public wasn't too pleased, as this story and comments show.
At the time of the purchase, which was only 16 months ago, US Steel "hailed Stelco's Lake Erie Works at Nanticoke, as "the most modern integrated steel plant in North America."
Reopened? The press release said "indefinitely." Tonight's news said that it takes about a week just to fire up the furnaces.
at 11:29 on March 4th, 2009
Yes, Barbara, our Bowater Plants seem to be quite the mess, don't they? Now it seems that the city of Hamilton is in the same boat.
"Representatives of the former Stelco told the Ontario government they will honour all their obligations for both pensions and government loans."
at 13:44 on March 4th, 2009
The layoffs we keep reading about are just so depressing and awful - it just never ends.
at 18:41 on March 4th, 2009
I am sure it was a really hard decision by the US Steelmakers to close down Canadian Plants, after all they do not have to kick in a dollar for every dollar earned by Canadian Workers for Health Care, like they have to do in the states. It is always cheaper to use Canadians in US owned plants in Canada, hence why it boggles the mind why Canadian Carmakers are in Trouble when costs are 50% cheaper in Canada. Someone at GM has some splain to do!
at 06:10 on March 5th, 2009
The two countries are each in the grip of this global crisis and I am sure this type of impact goes both ways, but still this is such a devastating blow to places like Hamilton and in the states in the USA where plants will be idled. When a major employer closes the doors so much else in that city/state's economy is impacted.