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ArcelorMittal Announces Wire Drawing Mill Closure

“Despite our best efforts, the ongoing economic challenges, increased steel imports in Canada, and market conditions made it clear that we needed to reduce our operating footprint,” said ArcelorMittal spokesman Jean-Philippe Grou in a statement. 

Grou said after thoroughly looking at the alternatives, ArcelorMittal made the decision and will now focus on supporting employees. 

“They were saying even without, even if the tariffs weren’t here, there is a high possibility that this was going to happen,” said Mike Hnatjuk, president of the United Steelworkedrs Local 5328 that represents workers at the Hamilton mill. 

ArcelorMittal Long Products Canada chief executive officer Stéphane Brochu said the closure was necessary to ensure the sustainability of its wire drawing business. 

“It will allow us to improve our operational efficiency and secure our long-term competitiveness in the demanding wire drawing market,” Brochu said in a statement. 

Hnatjuk said he expects to begin talks with the company regarding a closure agreement next week. 

“We have stuff in our collective agreement that we hope that they’re going to follow and they’re going to offer and are we most definitely going to try to get what’s best for all this,” Hnatjuk said.

In a statement, Hamilton mayor Andrea Horwath said she was concerned for the workers affected and called on “the urgent need for action from the federal government.” 

The Canadian Steel Producers Association has been pushing the federal government to reinstate retaliatory tariffs on the U.S. after it doubled tariffs on Canadian steel and aluminum. However, efforts have hit a setback after a U.S. federal court agreed the Section 232 tariffs will remain in place while a case is heard. The association is also pushing for the government to put tariffs on China-originated steel products due to allegations of unfair government support, Bloomberg reported. 

According to Bloomberg, the closure will put 153 employees out of work, adding to the more than 700 workers that had already been laid off since the Section 232 tariffs were implemented in March. 

Hnatjuk said the Hamilton mill plans to cease operations by the end of June.