Joly warns Stelco owner to protect jobs or face forced sale of Canadian assets

A Stelco flag flies beside a Canadian flag at the steel production facility in Hamilton, Ont., on Monday, Feb. 10, 2025. THE CANADIAN PRESS/Nick Iwanyshyn The Canadian Press Writer Oct 16, 2026, 1:47 PM Industry Minister Mélanie Joly says the U.S.-based owner of Stelco must uphold job commitments it made when it purchased the Ontario-based steelmaker or risk being forced to sell its Canadian assets.

In a speech at the Canadian Club in Toronto on Friday, she also raised the possibility of the federal government taking equity positions in strategic industries.

But Joly stopped short of explicitly saying Ottawa was prepared to take an ownership stake in Stelco.

The minister singled out Stelco owner Cleveland-Cliffs, accusing the American company of supporting U.S. tariffs that are damaging its own Canadian operations.

Stelco announced plans on Sept. 28 to lay off up to 500 workers across its Hamilton and Lake Erie facilities, citing the ongoing trade crisis, weak demand and continued import pressure.

Stelco’s Hamilton Works produces cold-rolled and galvanized steel. The company said it would indefinitely idle both operations.

— By Brett Bundale in Ottawa, with files from Tara Deschamps in Toronto