Canada threatens Stelco owner with forced asset sale over layoffs

Canadian Industry Minister Mélanie Joly has warned Cleveland-Cliffs, the U.S.-based owner of Stelco, that the company faces potential financial penalties and a forced divestiture of its Canadian assets. The threat follows Stelco’s decision to halt production at its Hamilton, Ontario, plant and concentrate operations at its Lake Erie Works facility in Haldimand, a move that has led to significant layoffs.

Joly stated that the federal government believes there have been multiple breaches of commitments made by Stelco under the Investment Canada Act. While Stelco’s president, Paul Simon, has argued that U.S. tariffs have created market realities that necessitate these changes, Joly accused the American company of supporting the very tariffs that are damaging its Canadian operations.

Negotiations remain an option, with Joly expressing a willingness to return to the table to resolve the standoff. However, she emphasized that the government will use the “full force of the law” to ensure strategic industrial capacity remains operational and that job commitments are upheld.