Cleveland-Cliffs says Stelco meets Investment Canada Act commitments and seeks meeting with Minister Joly

Cleveland-Cliffs, the U.S. owner of Stelco, said in a Tuesday news release that after an exhaustive review it is in full compliance with all 34 undertakings required under the Investment Canada Act following its 2024 acquisition of the steelmaker. The company noted that Stelco’s performance, including employment commitments, exceeds the obligations set at the time of the purchase.

The statement came after Industry Minister Mélanie Joly gave Cleveland-Cliffs a 15-day deadline to reverse layoffs before pursuing legal action. Joly had earlier sent a demand letter alleging violations of the Act and said she is prepared to meet with the company to protect Canadian jobs and the steel sector.

"I remain prepared to sit down with Cleveland-Cliffs to find a solution. But our bottom line is clear: protect Canadian jobs, defend our steel industry and ensure that commitments made to Canada are respected," Joly said.

Cleveland-Cliffs said it has asked for a meeting with Joly and its chairman and CEO Lourenço Gonçalves to discuss resuming full employment for the 175 workers temporarily laid off in Hamilton. The company added that the minister has not yet responded to the request.

"We want to find a solution for Hamilton and its workers as soon as possible and believe common-sense trade policy will make this a reality," Gonçalves said.

The firm indicated that the layoffs, which could affect up to 500 workers across its Hamilton and Nanticoke facilities, are needed to ensure the company's survival amid U.S. steel tariffs that have squeezed sales. Gonçalves highlighted that Stelco’s third-quarter results were its strongest since the acquisition, citing an improved Canadian hot-rolled market.

During an earnings call, Gonçalves praised President Donald Trump’s trade policies, saying they help create conditions for companies to invest in local communities and expand domestic production.

Union leaders expressed skepticism about the layoffs, with United Steelworkers Local 1005 president Ron Wells questioning why profitable departments were being shut down.

Cleveland-Cliffs said it will update its compliance report after the current reporting period ends on Oct. 31.