Cleveland-Cliffs CEO signals possible Stelco sale amid federal dispute

Cleveland-Cliffs CEO Lourenço Gonçalves told CBC’s Power & Politics that he is prepared to sell the Stelco steel plant in Hamilton, Ontario, within the next twelve months if the ongoing dispute with the federal government proceeds to litigation. He said the company is not currently for sale but indicated a future sale could occur after a period of operation.

The remarks follow Industry Minister Mélanie Joly’s recent demand that Cleveland-Cliffs reverse layoffs announced last month or face legal action. The government maintains that the 2024 purchase of Stelco required the buyer to maintain the existing level of unionized employees through 2029. In a letter, Joly warned that any court-ordered penalties could include a directive for the company to divest Stelco.

"I take exception to the minister of industry speaking openly to buyers. The company is not for sale," Gonçalves said during the interview.

Gonçalves added that his original motive for acquiring Stelco was to prevent the plant from undercutting the U.S. market, a stance he has linked to his support for U.S. tariffs on Canadian steel. He urged Canada to adopt stricter measures on foreign steel imports.

"Block the border, allow me to bring the workers back. If you don't block the border there's no way to bring the workers back," he said.

Joly responded that while the government is tightening the domestic steel market, it must still ensure manufacturers have access to some imported steel.

"We need to make sure that across the country for our business and Canadians, they need to have access to some steel that is not made in Canada," the minister said.

Stelco previously justified the layoffs as necessary for the company's survival amid U.S. steel tariffs that have squeezed its sales. Cleveland-Cliffs reported that Stelco’s third-quarter performance this year was its strongest since the acquisition.