L’ORIGNAL, Ontario, April 01, 2019 (GLOBE NEWSWIRE) -- Ivaco Rolling Mills announced on April 1 that it will be reducing production levels at its L’Orignal facility effective April 28 as a result of deteriorating market conditions in the steel industry. It is anticipated that this will result in the permanent reduction of our workforce by 50 full-time employees. In a meeting held on Wednesday, workers were notified by the company that we cannot continue a 4-crew operation. Both the rod mill and melt shop will be placed on a 3-crew schedule.
The steel industry in Canada is currently facing tremendous pressure caused by disruptions in global steel markets due to overcapacity, U.S. trade actions, and safeguard measures initiated by other countries. The United States imposition of global tariffs on steel and aluminum under Section 232 has led to a decline in steel exports to the U.S. market and caused a surge in steel imports that have been diverted to Canada. Other jurisdictions around the world, including the European Union, have also implemented safeguard actions on steel products, which has increased the volume of steel being diverted to Canada.
“Canada is one of the most exposed steel markets in the world, and the lack of resolution to the U.S. 232 trade action continues to hamper exports and increase flow of diverted steel into Canada, causing significant harm to the industry,” said Will Trower, Chief Financial Officer at Ivaco. “We are doing everything in our power to minimize the impact of this market turbulence on our employees. Ivaco Rolling Mills remains committed to producing high quality steel billets and wire rod in Canada.”
“These layoffs are devastating to our members and the community. As a Union we are doing everything we can on both sides of the border to put an end to these illegal and unjustified 232 tariffs imposed by the US. Here in Canada, we are also urging the Finance Minister to follow the lead of the EU and extend the current safeguards, to protect good Canadian steel jobs,” said Richard Leblanc, Area Coordinator for Eastern Ontario, of the United Steelworkers.
Ivaco Rolling Mills continues to work with our partners in labour, industry and government towards a resolution of the U.S. 232 tariffs and the implementation of final safeguard measures, which will stabilize the market and protect Canadian jobs.
About Ivaco
Ivaco Rolling Mills is a reputable wire rod supplier for the automotive, energy, agriculture, construction and telecommunication industries. Its facility, based in the counties of Prescott and Russell, ON produces high quality steel billets and wire rod in a safe, environmentally friendly, and energy efficient manner.
Contact
Francis Miner
Manager, Trade, Ivaco
613-675-6626 (l'Orignal)