Stelco CEO says layoffs driven by weak demand, not federal support

Stelco’s parent company says recent layoffs and production changes at its Hamilton steel plant were driven by market conditions, not by a lack of government funding. CEO Lourenco Goncalves said there was little demand in Canada for the company’s galvanized steel, and that financial support from Ottawa would not have changed the decision. The company announced about 350 layoffs this week and said affected workers were offered roles at a nearby mill. Prime Minister Mark Carney criticized the move, while federal officials reportedly explored options such as bridge financing and loans to keep production going. Goncalves said Stelco still plans to produce steel, but will focus on lines with stronger demand. He added that the company needs access to export markets, especially the United States, and described the pause in galvanized steel production as temporary while trade conditions remain uncertain.