Welcome Back, Stelco

[SteelTown]

It’s the end of an era as Stelco name disappears

October 31, 2007
BY NAOMI POWELL

Goodbye, Stelco. Hello, U.S. Steel Canada.

On its first day as Stelco’s new owner, U.S. Steel replaced the corporate name that’s been inextricably linked with Hamilton for decades.

By Wednesday afternoon, Stelco’s website and the glass front door of its Hamilton head office were already emblazoned with its new handle: U.S. Steel Canada.

The switch came as Pittsburgh-based U.S. Steel closed its $1.1-billion purchase of Stelco and swiftly installed a new Hamilton management team, led by industry veteran Douglas R. Matthews.

“United States Steel Canada, United States Steel Serbia, United States Steel Slovakia (that’s) the way we name subsidiary companies within United States Steel,” Matthews said in an interview.

“Of course we wanted to respect the history and heritage of Stelco, the Steel Company of Canada. We thought it would be nice to merge the two names.”

For Terrie DeMelo, who watched a worker scrape the Stelco logo off the glass door of its headquarters yesterday, the change is bittersweet.

“How can you talk about Hamilton and not mention Stelco?” said the Hamilton native and former employee of the steelmaker.

“In the long run (the sale) is probably a good thing for the company. But the thing about it being a Canadian company just feels like it’s gone.”

The Steel Company of Canada was formed on June 8, 1910, through the incorporation of five individual screw, steel, bolt and wire manufacturers.

It officially changed its name to Stelco in 1980, partly to satisfy new French-language requirements.

The name Stelco, it was found, worked well in both French and English.

The Stelco moniker soon became synonymous with Canadian steelmaking.

By the time industrial giant U.S. Steel came calling this year however, Stelco and its workforce had been dragged through years of financial problems and a difficult restructuring.

Against that background, some workers found it hard to shed a tear for the retired name.

“I don’t care,” said Tony Liota, an industrial mechanic in Stelco’s cold mill.

“I’m probably better off with these guys as a worker than I was with Stelco because of the size of the organization. I’m now part of a worldwide company versus one little company that was trying to make a go of it.”

Matthews said most remaining Stelco signage will be replaced with the U.S. Steel Canada logo.

[raisethehammer]

what a stupid name.
US Steel Canada??

Thanks for your takeover fellas, but this chap will always call it Stelco - Steel Company of Canada.

[matt602]

Eh, I don't care what it's called if they can make the place start earning money again.

What this guy said here:

“I’m probably better off with these guys as a worker than I was with Stelco because of the size of the organization. I’m now part of a worldwide company versus one little company that was trying to make a go of it.”

Is very true.

[flar]

People will be calling it stelco for a long time to come.
Hopefully US Steel can make it profitable, like dofasco.

[raisethehammer]

they've been making gobs of money.

[Jon Dalton]

I'm sure it was a different scene when the folks pulling the strings at Stelco and Dofasco also lived and shopped in Hamilton, and thus had a stake in the community.

[SteelTown]

U.S. Steel Canada plans Hamilton blast furnace shutdown

October 14, 2008
By Naomi Powell, The Hamilton Spectator

U.S. Steel Canada is planning to shut down its Hamilton blast furnace for up to eight weeks as the global market meltdown takes its toll on the steel sector.

A shutdown at the former Stelco would likely begin at the end of the month, says a source familiar with the plans.

The move comes as steelmakers across the globe face plunging demand from customers badly battered by the credit crisis.

Many large customers have been unable to borrow the money they need to buy steel. Others are struggling to contend with a slowing economy that has shrunk demand for everything from construction to appliances and cars.

Last month, ArcelorMittal Dofasco announced plans to scale back production in the second half of the year with CEO Juergen Schachler citing "tough economic times and unexpected weakness in the North American manufacturing sector."

Parent company ArcelorMittal has said it will slash production by 15 per cent across its global operations.

And last week, Russian steel firm OAO Severstal announced plans to slash its October production by 25 per cent at its Russian plant and 30 per cent at its operations in the United States and Italy.

Trevor Harris, spokesperson for U.S. Steel Canada, declined to comment on potential production cuts. He said operational changes would be discussed in the company’s quarterly earnings call, scheduled for Oct. 26.

“As we’ve said in the past, we will adjust production up and down to keep pace with customer orders,” Harris said.

It is unclear whether the cuts would result in layoffs. The former Stelco employs about 1,700 hourly workers at its Hamilton plant.

ArcelorMittal Dofasco has said it will cut back on overtime and reduce its casual employee base as it slows production.

[MsMe]

U.S. Steel Canada plans Hamilton blast furnace shutdown

October 14, 2008
By Naomi Powell, The Hamilton Spectator

U.S. Steel Canada is planning to shut down its Hamilton blast furnace for up to eight weeks as the global market meltdown takes its toll on the steel sector.

Will they change the story after the 8 weeks is up and say we decided to shut the whole place down? I hope it doesn't come to that. Sure is a bleak future all around.

[Dundasguy]

Will they change the story after the 8 weeks is up and say we decided to shut the whole place down? I hope it doesn't come to that. Sure is a bleak future all around.

That could be a possibility. When oil was $145 a barrel, it was actually cheaper to produce a ton of steel in NA then to ship it from China. With oil back down under $80, that advantage is now gone.

It's no secret that USS really wanted the Lake Erie works, it's the crown jewel of the industry.

More to come...

[coalminecanary]

oil will go back up.

[drpgq]

U.S. Steel Canada plans Hamilton blast furnace shutdown

It is unclear whether the cuts would result in layoffs. The former Stelco employs about 1,700 hourly workers at its Hamilton plant.

ArcelorMittal Dofasco has said it will cut back on overtime and reduce its casual employee base as it slows production.

Wow is that all that is left at Stelco (besides the salary dudes)? I thought there was more than that left there. Good luck to them. Hopefully the recent drop in the dollar will give them a hand. I bet Michigan wishes they had a currency they could drop 15% in a few weeks (although in no way am I advocating a general longterm policy of whoring out your currency).

[MsMe]

Wow is that all that is left at Stelco (besides the salary dudes)? I thought there was more than that left there.

I was shocked at how low that was too. Wow that's unreal.

And yes there has been rumours for years now moving everthing to the lake Erie works.

[adam]

oil will go back up.

... haha! i totally believe this. a car dealer said as soon as oil came back down this week she started selling SUVs and trucks again. I swear, dogs are more intelligent than some people..

[Gurnett71]

I was shocked at how low that was too. Wow that's unreal.

And yes there has been rumours for years now moving everthing to the lake Erie works.

Interesting. My grade 12 urban geography teacher bet us that Stelco would end up consolidating their operations at Lake Erie works within 20 years--and that was 20 years ago this year, I think! Hope he doesn't try and collect our wager with interest.

[SteelTown]

U.S. Steel idles Hamilton furnace
The Hamilton Spectator
(Oct 24, 2008)

U.S. Steel Canada has begun shutting down its Hamilton blast furnace due to the global financial crisis.

The company intends to halt primary steelmaking for six to eight weeks while continuing to make coke at full speed, sources say.

Layoffs at the steelmaker are possible but a "last resort." The company is in talks with union leaders to reschedule maintenance projects to keep employees on the job.

The tentative timeline for the shutdown could change depending on the economy.

[flar]

A friend of mine who's a steamfitter heard they were going to stop making coke too--nearly total shutdown. Hopefully that's not true.

[markbarbera]

This adds to the mix:

U.S. Steel faces three charges

November 07, 2008
Eric McGuinness
The Hamilton Spectator

Stelco Inc., now operating as U.S. Steel Canada Inc., is charged with releasing illegally high levels of toxic dioxins and furans into the air over Hamilton last year.

It's also charged with discharging water toxic enough to kill fish into the harbour at about the same time.

It faces one count of air pollution and two of water pollution laid by the Ontario Ministry of the Environment for Environmental Protection Act violations at the Hamilton Works.

One count alleges the sinter plant stack emitted illegal levels of dioxins and furans for about 10 days in late February and early March of 2007.

The other two allege cooling water discharged into Hamilton Harbour in February killed more fish than allowed in a standard test and the company failed to report the violation as soon as reasonably possible.

The water charges fall under Municipal-Industrial Strategy for Abatement regulations that require industries discharging persistent toxic substances into Ontario waterways to monitor themselves. They must demonstrate that their effluents are not toxic to rainbow trout and water fleas, used as indicator species for other aquatic life. Any incidents of non-compliance must be reported quickly to the ministry, first by phone, then by letter.

The ministry no longer issues news releases when it lays charges, but revealed its actions against the former Stelco plant in response to a Spectator request for information about heavy emissions from the coke oven battery Sept. 3.

It said the water charges were laid July 18 and the air charge on Aug. 28. The next court appearance on the air charge is Nov. 24. A pre-trial hearing on the water charges is scheduled for Jan. 28.

Jennifer Hall, the ministry's regional communications adviser, wrote in an e-mail: "As these matters are before the courts, it would be inappropriate to comment on them any further at this time."

Trevor Harris, spokesperson for U.S. Steel Canada, said: "It would be inappropriate for me to comment on matters that took place under the previous management."

Hamilton Works has the only iron sintering furnace in Canada. In 2006, Stelco said it was used to fuse 600,000 tonnes a year of fine, iron-rich, dust into fist-sized chunks that could be fed into the blast furnace, which produces molten iron used to make steel.

Lynda Lukasik of Environment Hamilton, who was on a panel that helped set Canada-wide standards for sinter plant emissions, said yesterday she believed the Hamilton plant had been shut down for more than a year.

Since USS doesn't have GreenShift to use as a scapegoat, perhaps they will use this as their excuse for closing up shop in Hamilton...

[Jon Dalton]

Those fines will be a slap on the wrist, like the $85,000 Dofasco got for safety violations.

[markbarbera]

Significant layoff announcements at USS Hamilton Works are imminent.

[MsMe]

Significant layoff announcements at USS Hamilton Works are imminent.

I hate this recession and all these layoffs. :(

[SteelTown]

US Steel Hamilton also extending blast-furnace shutdown
November 13, 2008

BY NAOMI POWELL
The Hamilton Spectator

U.S. Steel Canada will lay off 209 workers and extend the shutdown of its Hamilton blast furnace into 2009, union leaders say.

The steelmaker will temporarily lay off 177 employees  Monday, said Rolf Gerstenberger, president of the United Steelworkers union representing Hamilton workers.

The union was told an  additional 32  layoffs will come in the next two to three weeks, he said.

The workers will not be called back until the plant’s blast furnace is brought back from a shutdown, Gerstenberger said.

The shutdown  -  which began late last month for a tentaive period of six to eight weeks - will now be extended into the new year, Gerstenberger said.

U.S. Steel Canada would only confirm it will lay off 175 workers and would not speculate on any future cuts.

“The length of the layoffs will depend on an increase in customer demand,” said spokesperson Trevor Harris.

Layoffs are occurring across Pittsburgh-based U.S. Steel’s North American operations, he said.

“While we have made every effort to maintain employment levels at our operations; we must now adjust our workforce to match our production levels,” Harris said.

“The dramatic downturn in the economy has negatively affected our overall business, and we have adjusted production across all of our operations to stay in line with customer demand.”

The Hamilton plant employs about 1700 people.

[Jon Dalton]

I hope the federal government decides to put billions of dollars into rail infrastructure programs including high speed rail. The auto industry will not rebound and rail building could replace some of the steel demand being lost. Using money that would otherwise go to EI payments and useless bailouts to a failing industry, we could employ people producing something of real value that would be ours for generations to come.

[MsMe]

I hope the federal government decides to put billions of dollars into rail infrastructure programs including high speed rail. The auto industry will not rebound and rail building could replace some of the steel demand being lost. Using money that would otherwise go to EI payments and useless bailouts to a failing industry, we could employ people producing something of real value that would be ours for generations to come.

This could really be a big contract for all. Both steel companies can supply the steel for the rails and the cars. And National Steel Car can make the cars. That makes a good outcome for all 3 of the companies.

[markbarbera]

Sadly, I suspect that when USS bought Stelco it was more interested in its customer accounts than its production facilities. I don't expect to see Hamilton Works as part of its portfolio in the near future. I expect to see it divided up and sold off in parts. Or simply mothballed. They may keep Nanticoke but that's about it. I guess there's some comfort in the fact that the Hamilton plant is no longer a significant employer for this city.

[MsMe]

Sadly, I suspect that when USS bought Stelco it was more interested in its customer accounts than its production facilities. I don't expect to see Hamilton Works as part of its portfolio in the near future. I expect to see it divided up and sold off in parts. Or simply mothballed. They may keep Nanticoke but that's about it. I guess there's some comfort in the fact that the Hamilton plant is no longer a significant employer for this city.

Sadly it seems to be headed that way. I hope it doesn't come to that though. I guess time will tell.

[raisethehammer]

Sadly, I suspect that when USS bought Stelco it was more interested in its customer accounts than its production facilities. I don't expect to see Hamilton Works as part of its portfolio in the near future. I expect to see it divided up and sold off in parts. Or simply mothballed. They may keep Nanticoke but that's about it. I guess there's some comfort in the fact that the Hamilton plant is no longer a significant employer for this city.

yea, that's looking more likely everyday now.
I'm starting to think that it might be time for the place to just close down once and for all and for Hamilton to embark on the journey of re-creating ourself.
Tough, I know. That loss of tax dollars will turn city hall into a freaking circus, but it's going to happen eventually. This might be as good a time as any. Once the next boom period comes, perhaps the land will be bought and the long process of clean-up and rehab can begin.

[SteelTown]

Layoffs hit Lake Erie Works
U.S. Steel announces temporary cuts as industry crisis worsens

November 26, 2008
Naomi Powell
The Hamilton Spectator

U.S. Steel Canada is planning about 100 layoffs at its Lake Erie facility as the crisis in the steel industry worsens, union leaders say.

The temporary cuts come on the heels of roughly 175 layoffs at the steelmaker's Hamilton operation, where the blast furnace was shut down due to slumping demand.

"We've been told to expect layoffs and the union is preparing for that," said Bill Ferguson, president of the United Steelworkers union at the Lake Erie plant. "They told us they're running different scenarios, but we should be prepared to see people go in December."

Though no official notice has been issued to workers, many on the plant floor have already been notified of the cuts by their managers, he added.

U.S. Steel Canada employs about 1,100 workers at the Lake Erie plant in Nanticoke. It employs 1,700 workers in Hamilton. Both plants make steel using a blast furnace.

Trevor Harris, a spokesperson for the firm, declined to comment on any potential layoffs.

Demand for steel has flatlined as orders dry up from key customers in the automotive, appliance and construction industries.

Analysts expect the massive production slowdown in the sector to continue as the global financial meltdown unfolds. Although weekly production levels have not yet fallen to the 10-year lows last seen in 2001, they will likely reach this point shortly, according to Mike Willemse, a steel industry analyst for CIBC World Markets.

In a note to investors, Willemse said steel production "could decline by as much as 50 per cent before stabilizing."

Steel giant ArcelorMittal has slashed global production by one-third, cutting output at Hamilton's Dofasco by 40 per cent through at least the rest of this year. The plant will shut down for two weeks at Christmas, with about 5,000 workers required to take unpaid leave or vacation.

Pittsburgh-based U.S. Steel has also slowed production. In addition to the Canadian cuts, it has laid off 500 workers at operations in the Pittsburgh area; northwest Indiana; Fairfield, Ala.; Ecorse and River Rouge, Mich.; and Granite City, Ill.

Analysts don't expect demand for steel to pick up until at least mid-2009 as customers work through their own inventory and scale back on production of cars and appliances.

[Jon Dalton]

Check out this huge multi-company industrial complex in Germany entirely dedicated to wind turbine production:

http://www.compositesworld.com/uploadedimages/Publications/CW/Articles/Internal/HPC1108_Windbladepart1_c.jpg

Hamilton's future?

[SteelTown]

A hint into the future of Hamilton's plant?

U.S. Steel transferring work to Nanticoke

December 03, 2008
Naomi Powell
The Hamilton Spectator
http://www.thespec.com/News/Business/article/475912

A local steelmaker will pick up production as U.S. Steel lays off 3,500 workers south of the border.

U.S. Steel announced plans last night to idle three American plants as it battles a deep downturn in the industry.

The firm's remaining production will be consolidated at four locations, including U.S. Steel Canada's Lake Erie plant in Nanticoke.

"We believe that our difficult decision to temporarily consolidate our production is a necessary response to current market conditions," U.S. Steel CEO John Surma said in a statement last night.

The company will temporarily stop production at plants near Detroit and St. Louis and at an iron ore facility in Minnesota. Operations won't resume until markets recover, said spokesperson Courtney Boone.

U.S. Steel would not comment on how much production would be brought to its operations in Nanticoke, or at the other plants where it intends to concentrate production: Mon Valley Works near Pittsburgh, Gary Works in Gary, Ind., and Fairfield Works near Birmingham, Ala.

"It's certainly regrettable the company had to take these actions," said Bill Ferguson, president of the United Steelworkers union in Lake Erie. "At the same time I'm relieved Lake Erie is not on the block as yet."

Ferguson didn't know how the announcement would affect potential layoffs. Union leaders were told last week to expect about 100 layoffs in Nanticoke.

Built in the early 1980s, Lake Erie Works is the newest integrated steel plant in North America and is among U.S. Steel's most efficient.

By contrast, the company's plants in Pittsburgh and Indiana are older, with higher costs, he said.

As for the fate of U.S. Steel Canada's Hamilton plant, Boone would only say that the company is "continuing to review the ongoing operations at all of our facilities."

The blast furnace in Hamilton remains out of commission following a shutdown in late October.

U.S. Steel has already laid off more than 190 workers in the plant, and has told the union to prepare for 150 more, union leaders say.

U.S. Steel Canada employs 1,700 workers in Hamilton and 1,100 in Nanticoke.

[markbarbera]

Another announcement from US Steel is imminent, and it will not be good news for Hamilton. There may be some prime waterfront property available soon...

[BrianE]

If by prime you mean the biggest damn brown field you've ever seen... then yes.

[flar]

Potentially one of the most expensive cleanups in Canadian history to get that land usable, I'd imagine.

[SteelTown]

Probably above $100 million, think of all the coal buried in the soil from the storage.

[FairHamilton]

Perfect for an economic stimulus project.

[LikeHamilton]

I have heard through a very reliable grape vine that the steel industry in Hamilton will be cutting up to 1,000 jobs in January.

[NorthEndRules]

I lived in one of the Spencer Creek condos a couple of years ago. I was surprised it had been an industrial site that underwent remediation. It looks like it had never been contaminated. This cleanup resulted in 4 upscale condo buildings and a retirement residence.

So, how much money will it take to remediate Stelco properties if it does shut down?

Imagine a whole new complex of condos. I think the core needs a mix of housing anyways.

[Millstone]

I lived in one of the Spencer Creek condos a couple of years ago. I was surprised it had been an industrial site that underwent remediation. It looks like it had never been contaminated. This cleanup resulted in 4 upscale condo buildings and a retirement residence.

So, how much money will it take to remediate Stelco properties if it does shut down?

Imagine a whole new complex of condos. I think the core needs a mix of housing anyways.

What good are waterfront condos if there are no jobs? It's going to create a bunch of Toronto commuters that will just add to the traffic headache, not to mention the further decay of the City of Hamilton.

[flar]

Let's not get ahead of ourselves here. For one, Stelco isn't even closed. Then the plant would have to be demolished. After that, somebody would have to fund the cleanup . There won't be any private funding for that job, and governments are usually reluctant to fund anything in Hamilton, especially a huge project like this. The city won't be able to afford it. After it's cleaned up, if it ever gets cleaned up, I seriously doubt anyone will want to put condos there, as the land will still be completely surrounded by other industrial areas.

[MsMe]

I agree with you Flar. Who wants a condo right beside dirty industry? No way one could open any windows, let alone sit on a balcony. Plus we are in a recession. No one is spending major money these days.

[SteelTown]

The Port Authority will likely purchase the land. It'll be up to them to decide what to do with the land, likely keep it for employment since that's all that they focus on.

[Dundasguy]

Another announcement from US Steel is imminent, and it will not be good news for Hamilton. There may be some prime waterfront property available soon...

Come on, what do you know?

[Hammer Town]

No condo I agree with that. However I think seeing something other then steel plants would good in the long run. I mean even to not have to look at that from the Bridge would be a positive in the long run. But heck who really knows.

[go_leafs_go02]

Parkland with a path along the shore all the way through to Cootes Paradise.

Dreaming of it...wow.

[realcity]

http://upload.wikimedia.org/wikipedia/commons/thumb/9/91/Steel_Winds_2007.png/800px-Steel_Winds_2007.png

this is the former Lackawana steel site in Buffalo. It took a Federal Superfund to clean it up. There is no way Hamilton could do it alone. Perhaps at the same time of Randle Reef clean up they might be starting to clean up Stelco.

[LikeHamilton]

Forget the dreaming! Why would you want it shut down? 1200 people would lose there high paying jobs. At an average of 4 persons per house hold that would be 4800 people directly effected. US Steel Canada would have no reason to keep an office in Hamilton. Another couple of 100 jobs lost. The trucking jobs, the dock and shipping jobs and the hundreds of jobs of support and suppliers would be lost. For want? A couple of condos or wind mills? It is better off as a viable steel mill.

[flar]

Forget the dreaming! Why would you want it shut down? 1200 people would lose there high paying jobs. At an average of 4 persons per house hold that would be 4800 people directly effected. US Steel Canada would have no reason to keep an office in Hamilton. Another couple of 100 jobs lost. The trucking jobs, the dock and shipping jobs and the hundreds of jobs of support and suppliers would be lost. For want? A couple of condos or wind mills? It is better off as a viable steel mill.

Indeed, I would like to see it stay open too.

[Millstone]

Forget the dreaming! Why would you want it shut down? 1200 people would lose there high paying jobs. At an average of 4 persons per house hold that would be 4800 people directly effected. US Steel Canada would have no reason to keep an office in Hamilton. Another couple of 100 jobs lost. The trucking jobs, the dock and shipping jobs and the hundreds of jobs of support and suppliers would be lost. For want? A couple of condos or wind mills? It is better off as a viable steel mill.

Let's be fair, it would be more than a "couple" of condos; this is prime waterfront we're talking about.

[SteelTown]

Shut down of Hamilton Works is bound to happen one day unless big investments is made to upgrade Hamilton Works. Or else everything will be transfered to the Lake Erie plant.

[go_leafs_go02]

Forget the dreaming! Why would you want it shut down? 1200 people would lose there high paying jobs. At an average of 4 persons per house hold that would be 4800 people directly effected. US Steel Canada would have no reason to keep an office in Hamilton. Another couple of 100 jobs lost. The trucking jobs, the dock and shipping jobs and the hundreds of jobs of support and suppliers would be lost. For want? A couple of condos or wind mills? It is better off as a viable steel mill.

Look ahead to the future. Steel Industry in NA is not going anywhere, and I don't want my tax dollars going to prop up an ancient industry if transformation is possible (meaning a bailout). With globalization, changes will happen. Sure some people will be put out of work, but look at Pittsburgh. Their industries evolved. No, I've never been there, but alot of things I hear about Pittsburgh is that it's done a fantastic job of getting out the Manufacturing (Steel) Industry and focusing more on Health & Technology.

One problem. Hamilton is like Gary, Indiana. It's not like Pittsburgh, which is THE place to be in Western Pennsylvania. THE place to be in Gary Indiana is a little more north, aka Chicago, and THE place to be here is in Toronto, Ontario.

The reason areas like Barton and along the waterfront are so decrepit and run-down are because of the steel mills, due to pollution, and just the gritty factor trickle south.

[FairHamilton]

Look ahead to the future. Steel Industry in NA is not going anywhere, and I don't want my tax dollars going to prop up an ancient industry if transformation is possible (meaning a bailout).

Confused by your post. What do you mean by "Steel Industry in NA is not going anywhere"?

Do you mean it's here to stay? Or do you mean it's not progressing?

[go_leafs_go02]

Confused by your post. What do you mean by "Steel Industry in NA is not going anywhere"?

Do you mean it's here to stay? Or do you mean it's not progressing?
I meant progressing. Like we can all admit (hopefully), the glory days of the steel industries are passed (in north america).

[MsMe]

I meant progressing. Like we can all admit (hopefully), the glory days of the steel industries are passed (in north america).

Be careful what you wish for. If the steel companies were closed up. Then you have no idea how many people that would bankrupt. And it would be the pensioners it would hurt the worse.

[FairHamilton]

I meant progressing. Like we can all admit (hopefully), the glory days of the steel industries are passed (in north america).

I'd disagree, my understanding is that US Steel and Arcelor Mittal were running full out during the summer, and production bonuses were being made.

This slowdown isn't limited to NA Steel Mills, it's being felt by ones in China (and elsewhere) as well, http://www.chinafastener.info/en/news/2876.htm

I think the industry is changing and evolving not dying.

[NorthEndRules]

My original point was that a piece of land in Dundas was remediated for habitation. Does anyone know if the Stelco lands are beyond remediation? ie. too expensive. Didn't that Turkstra guy buy some land to remediate? I wonder what he's planning.

If you think about it that is alot of land used to employ 1400 people, not to mention the pollution, the waterfront/city image.

The global trend is to move labour intensive jobs to lower wage countries. They only reason global giants like Arcelor and US steel would want North American plants is proximity to customers and hard to train specialized skilled labour. It's innovation and an educated workforce that will provide future jobs here.

[emge]

My original point was that a piece of land in Dundas was remediated for habitation. Does anyone know if the Stelco lands are beyond remediation? ie. too expensive. Didn't that Turkstra guy buy some land to remediate? I wonder what he's planning.

If you think about it that is alot of land used to employ 1400 people, not to mention the pollution, the waterfront/city image.

The global trend is to move labour intensive jobs to lower wage countries. They only reason global giants like Arcelor and US steel would want North American plants is proximity to customers and hard to train specialized skilled labour. It's innovation and an educated workforce that will provide future jobs here.

Exactly. Do I know what will happen or when? No.
Do I think the steel industry will eventually move out of Hamilton... sure, eventually.

Although in the shorter-term it's terrible for those who directly rely on it, it is a lot of land used to employ a relatively small amount of people, however many there are/were/will be.

If we have skilled tech jobs, etc. in a skyscraper or two downtown employs the same amount of people and makes better use of a smaller piece of land... And the surrounding land can be used for other purposes. Imagine actually talking about skyscrapers on this forum.

Short-term it's no fun for anyone. It changes a lot about the city. But in the long-term, it may prove the greater asset.

Worst-case scenario, of course, would be to see the steel mills gone and no one who wants to touch the brownfields. Being waterfront though, it would happen eventually.

[crhayes]

Exactly. Do I know what will happen or when? No.
Do I think the steel industry will eventually move out of Hamilton... sure, eventually.

Although in the shorter-term it's terrible for those who directly rely on it, it is a lot of land used to employ a relatively small amount of people, however many there are/were/will be.

If we have skilled tech jobs, etc. in a skyscraper or two downtown employs the same amount of people and makes better use of a smaller piece of land... And the surrounding land can be used for other purposes. Imagine actually talking about skyscrapers on this forum.

Short-term it's no fun for anyone. It changes a lot about the city. But in the long-term, it may prove the greater asset.

Worst-case scenario, of course, would be to see the steel mills gone and no one who wants to touch the brownfields. Being waterfront though, it would happen eventually.

They need to cooperatively introduce other forms of manufacturing that use transferable skills (like building things involved in green technologies - car engines, turbines or whatever) as they phase out the steel industry in Hamilton. That way there are jobs for those that lose their jobs with the steel companies.

[MsMe]

That may help the laid off workers from the steel companies Crhayes but as I said before what about the pensioners that will lose their bridge and benefits. The bridge can be as much as 75% of a pensioners monthly wage. So to lose those things will hurt them immensely.

[FairHamilton]

http://www.thestar.com/Business/article/577950

Jan 27, 2009 10:49 AM

DANIEL LOVERING
The Associated Press

PITTSBURGH–United States Steel Corp.'s fourth-quarter earnings soared as strong pipe sales and an acquisition-related gain boosted results, but the steel maker forecast an operating loss in the current quarter due to the global economic slowdown.

U.S. Steel's earnings came amid an industrywide slump in demand for the metal among key buyers in the automotive, construction and industrial equipment sectors. Steel prices, which reached all-time highs in the first half of 2008, plunged later in the year, and production at domestic steel mills dropped to levels not seen in a quarter century.

The Pittsburgh-based company – the largest U.S.-based steel producer – said Tuesday its net income jumped to $308 million, or $2.65 per share, from $35 million, or 29 cents per share, a year ago. The earlier quarter included charges totaling $117 million, or 98 cents per share.

Quarterly sales rose to $4.57 billion from $4.54 billion last year, helped by strong sales from U.S. Steel's tubular steel business.

The latest quarterly results included a gain of $76 million, or 65 cents per share, related to U.S. Steel's acquisition of a portion of a partnership called Clairton 1314B. U.S. Steel sells coke, a steel making material, and byproducts through Clairton 1314B.

Excluding the gain, U.S. Steel said it would have earned $2 per share in the quarter.

Analysts, on average, estimated U.S. Steel would earn 71 cents per share on revenue of $4.27 billion, according to a survey by Thomson Reuters. The earnings estimates typically exclude one-time items.

Shares of U.S. Steel rose $1.84, or 6 per cent, to $31.30 in morning trading.

For the full year, U.S. Steel's profit more than doubled, jumping to $2.13 billion, or $18.11 per share, from $879 million, or $7.40 per share, in 2007.

In October, U.S. Steel posted record third-quarter results, helped by surging prices, but warned that fourth-quarter results would decline amid slowing demand from North America and Europe.

Later in the year, U.S. Steel announced it was laying off 675 workers in North America and idling three plants temporarily, affecting about 3,500 workers.

During the quarter, U.S. Steel's share price sank 48 per cent, hitting its lowest point in five years in November. In 2008, U.S. Steel shares shed 67 per cent of their value.

[adam]

If City Council had some insight they'd approach Stelco about building parts for Light Rail trains and tracks. But of course, by the time the city has dragged its feet long enough and finally decided to fund Light Rail, we'll be buying parts from Stelco based out of the US and paying a premium. "We are not a rich municipality" as Lloyd Ferguson likes to sing.

[matt602]

Stelco/US Steel doesn't do that kind of thing. They just make the steel which is shipped off to companies that DO manufacture the parts... in a broad sense. The only company in Hamilton that might be able to take part in that kind of thing is Siemens.

[adam]

Why is Siemens the only company that can take part in that kind of thing? Doesn't Stelco have any tool and die workers?

[flar]

Stelco makes the steel, then it is shipped to other factories to be turned into other products.

For example, my father in law used to work at a place that made leaf springs for trucks, they got some of their steel from Stelco. That factory closed a few years ago, which is an example showing another lost customer for Stelco and the overall decline of manufacturing in Ontario.

[FairHamilton]

US infrastructure stimulus spending on structures such as bridges, apparently has a component that all steel must come from the US. Not good for Hamilton.

[flar]

The Americans like having a double standard when it comes to free trade. Not good for us, but good for them. Our government could take a lesson. Personally, I've always been in favour of protecting our interests and industries, but our government seems to like selling off our wealth.

[adam]

Obama seems to be a protectionist :(

[SteelTown]

There was a steel traffic during Bush Jr's time. EU killed it.

It's Sentators that add these clause into the bill not Obama. I believe it was North Dakota's Senator that included the American steel. He's not a friend to Canada, look over his track on mad cow scare over US/Canada relationship.

[matt602]

US infrastructure stimulus spending on structures such as bridges, apparently has a component that all steel must come from the US. Not good for Hamilton.

Unless of course our government gets smart and does the same thing.

[adam]

Are you suggesting that Obama does not have a protectionist stance?
Look at this: http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081103/Cda_election_impact_081103/20081103?hub=Politics

and watch this: http://ca.youtube.com/watch?v=AkWEwwLBuvs
where he is quoted as saying "Now I didn't just start criticizing unfair trade deals like NAFTA"
Maybe he's right, but 85% of our exports go to the US.

[SteelTown]

US STEEL SHUTTING DOWN HAMILTON WORKS

March 03, 2009

The move that could affect 2,100 workers, although the precise total is not yet known.

The company has already laid off close to 700 workers in Hamilton, where it shut down its blast furnace in November.  The company plans to keep the coke ovens in Lake Erie active, Gerstenberger says.

 Check back with thespec.com for updates of this story

[Atticus]

word on the street has US Steel announcing the closure of Hilton Works and Lake Erie at 5pm today. Stay tuned.

[SteelTown]

US STEEL SHUTTING DOWN CANADIAN OPERATIONS
March 03, 2009



BY NAOMI POWELL
Hamilton Spectator




U.S. Steel Canada is completely shutting down in Hamilton and will close most of its Lake Erie operations, the Spectator has learned. The move is believed to be temporary and driven by slumping demand in the steel sector.

Union leaders say they were notified of the plan by company officials at about 3 p.m.

 "It's devastating for the community," said Bill Ferguson, leader of the United Steelworkers union in Lake Erie. "For the local people this will be quite a blow. This plant, Lake Erie, has never shut down in its history."

The move that could affect 2,100 workers  although the precise total is not yet known.


The company has already laid off close to 700 workers  of 1,700 hourly staff in Hamilton, where it shut down its blast furnace in November.  The company plans to keep the coke ovens in Lake Erie active, Ferguson says.

 The company is slated to make a formal announcement at 5 p.m.

 Check back with thespec.com for updates of this story

[SteelTown]

This will have a more harmful effect to the Norfolk Haldimand region.

[MsMe]

March 03, 2009
BY NAOMI POWELL
Hamilton Spectator

U.S. Steel Canada is shutting down its Hamilton and Lake Erie operations, putting 1,500 employees out of work.


Operations will be halted over the next several weeks as Pittsburgh-based U.S. Steel consolidates production at its plants in Pittsburgh, Indiana and Alabama.


"The difficult decision to continue to temporarily consolidate our production, we believe, is a necessary response to current market conditions," U. S. Steel CEO John Surma said in a release.


Comment on this story. Click here

Union leaders at the former Stelco, who were notified of the plan at about 3 p.m., say they have not been told when the layoffs will take effect or when operations will resume.


"It's devastating for the community," said Bill Ferguson, leader of the United Steelworkers union at Lake Erie. "For the local people this will be quite a blow. This plant, Lake Erie, has never shut down in its history."


The steel industry has been hit by one of the worst downturns in demand in decades. With the global economy tanking, orders from key buyers in the construction and auto industries have flatlined.


Steelmakers around the world have been slashing production and laying off workers in response.


U.S. Steel Canada has already cut close to 700 of its 1,700 hourly workers in Hamilton, where it shut down its blast furnace in November.


The remaining operations at the plant, including its steel finishing lines and coke ovens, will now be closed as well, said Rolf Gerstenberger, president of the United Steelworkers union at the plant.


All operations at Lake Erie Works in Nanticoke, except for the coke ovens, will also close.


“This is awful for Hamilton and it shouldn’t be allowed,” Gerstenberger said. "Layoffs are not solutions. They only make things worse.”


Unions will soon be holding meetings to inform members of the details of the shutdown.
Hamilton Mayor Fred Eisenberger said he was called by a U.S. Steel Canada representative this afternoon to warn him about the impending announcement.


“I was stunned,” he said, noting he has family working at the company, a connection he suspects many Hamiltonians also have. “It’s hitting pretty close to home.”


Eisenberger said he’s urging the federal government to deal with its employment insurance issues quickly. He added that the temporary shutdown “screams out” for the need for immediate infrastructure spending to help the troubled economy.


“The good news is this is not a shutdown. This is an idling,” he said. “This is not the end of the steel industry in Hamilton.”

Pittsburgh-based U.S. Steel bought Stelco for $1.9 billion in 2007.


npowell@thespec.com
905-526-4620


http://www.thespec.com/News/BreakingNews/article/523437

[emge]

Of course this is wretched in the short-term, and my heart goes out to the families affected by this. And of course, there is a need for jobs to be created for those workers that utilize their skills.

If it turns out to be a permanent shutdown, however, I still see this as one of the biggest opportunities to grab a chunk of waterfront property in the GTA and change Hamilton for the good that anyone's heard of in a long time. (And it would eventually create far more than 1400 new jobs). Add on the little industrial area between that and Bayfront Park for good measure, give them and the Lakeport folks incentive to move... the economy starts up again... the possibilities in three, five, ten years.

[urban_planner]

Should this be permenant like I suspect it will be this is a massive opportunity for Hamilton. I can't even begin to explain it to anyone who doesn't know why. I feel for the people effect but common Hamilton it time to move forward and onto new and exciting things.

[graupner]

Maybe on the very long term it is a good( 20,30 years ?) but within the next 10-15 years, this is very bad news.

Considering all the suppliers and the reliying factories, this could be very well somewhere around 5,000 well paid jobs lost in a city of 690k.

The tax base for the city is going to shrink rapidly. these industries are by far the largest taxpayers.

Just look at cities in Belgium who lost their steel mills, 20 years later they're still wondering...

[flar]

This is the culmination of many years of decline for Stelco. There have been recent years where over 10,000 manufacturing jobs have been lost in Hamilton. People have known this was coming. This will be painful, but the worst has already happened.

[SteelTown]

If Stelco was to shut down permenantly 2,100 would lose their job? Stelco really shrinked down in recent years.

[Millstone]

Time for Harry Stinson to whip up an offer to buy some waterfront.

Just saying.

[isaidso]

OMG. Stelco and Dofasco have really played their hands poorly. It's entirely feasible to operate a profitable and strong steel maker in Canada, but you need to produce the highest value added steel possible and invest in the factory, r&d, and innovation. There are lots of steel production that still occur in the US, France, Germany, etc.

Stelco has simply made really bad choices and selling to a foreign company like US Steel was the last straw. If you're going to risk becoming a periphery operation by selling to a foreign firm, you better make sure it's to one of the strong global producers who are gaining global market share, not one that is shrinking.

If Stelco was still independent, do you think production would be shifting offshore? Nope, 100% of their efforts would be directed towards improving the Hamilton steel plant. It's absurd that Ottawa is contemplating giving billions of dollars to foreign auto makers like Ford and GM, when a firm like Stelco is in trouble.

Every significant country in the world needs a sizable industrial sector. The steel industry is at the very root of this. Once that goes, skills in all kinds of trades, jobs, and other manufacturing leaves the country as well. Once it's gone, it's next to impossible to get it back again. The idea that western nations don't need an industrial sector is really misguided and foolish. Post industrial economy?

Britain realized a while ago how important it was not to lose the ability to make products domestically and has been feverishly trying to reverse de-industrialization in the UK. We need to do the same. Not everything should be imported from China. If that comes to pass, we will one day find ourselves in a position where we can't afford to buy the Chinese products we import. We'll have turned ourselves into a poor country.

Ottawa needs to re-patriate Stelco, stop any production from being transferred to US plants, then pour money into this firm to turn it around. GM can screw off. So can US Steel.

[BrianE]

I don't think anybody truly grasps the amount of land that Stelco and Dofasco own. Take a look at google maps. It's the same area as the downtown core, from Bay St. to Vicoria.

In a similar fashion to all the old mine sites in Northern Ontario, there's no reserve fund in place to pay for the clean up once Stelco is gone.

What do you do with an area of land that could fit another City of Hamilton but is also the dirtiest and most toxic piece of property in Southern Ontario?

[SteelTown]

It'll probably cost over a billion, perhaps 2 billion, to fund the brownfield cleanup just for the Stelco land. That would be a good way to create jobs in the short term. Once that happens you can create a study to detemine the best way to redevelop the land. Obviously land along the waterfront should be public property.

[emge]

I don't think anybody truly grasps the amount of land that Stelco and Dofasco own. Take a look at google maps. It's the same area as the downtown core, from Bay St. to Vicoria.

In a similar fashion to all the old mine sites in Northern Ontario, there's no reserve fund in place to pay for the clean up once Stelco is gone.

What do you do with an area of land that could fit another City of Hamilton but is also the dirtiest and most toxic piece of property in Southern Ontario?

Start with money... thinking of the tax base that's possible - the amount of income every single year from a piece of waterfront property that size that's been cleaned up and properly redeveloped?

Now think about image... cleaning up a giant part of our city, changing its image to everyone who goes by, changing the image of the city to the entire city as well.

It would be an enormous project, and that's what gives it so much potential to change things... sure, it's intimidating and difficult and many will say "impossible!" .... but anything's possible.

[MsMe]

A perm closure would hurt many more then just the existing employees. As the company does bridge the employee till age 65. Which can be as much as 75% of their monthly wages. Plus EVERYONE would lose their benefits. Only the medcations go gov controlled at age 65 not the rest of the benefits too. So this would effect many people in the longrun if it was close down perm.

[stuckinexeter]

sad to c this thread....
anyone with photos from 50's or 60's .....
at one time i think Dofasco had a red rooftop logo on the building on Ottawa St.
facing north toward the mountain.... and i can sort of remember a "Stelco" sign facing towards the bay......
if anyone can confirm would be great........

[MsMe]

sad to c this thread....
anyone with photos from 50's or 60's .....
at one time i think Dofasco had a red rooftop logo on the building on Ottawa St.
facing north toward the mountain.... and i can sort of remember a "Stelco" sign facing towards the bay......
if anyone can confirm would be great........

I agree. I don't want to see them close perm.

[stuckinexeter]

forgot to mention at the same time as the red DOFASCO rooftop sign faced towards the mounain... also visible was the "HOOVER" sign from the plant at Barton & Gage.... photos welcome......

[graupner]

well said, isaido. But Harper and co. don't think like that...

[hamiltonguy]

well said, isaido. But Harper and co. don't think like that...

If American Senators thought like Harper, then the plant wouldn't be shutting down.

Protectionism helps no one, as long as labour and environment standards are protected in international trade.

Even if we bought Stelco back though, all the contracts are for US Steel so Stelco would be making Steel for no one.

[SteelTown]

Just so that you guys are aware some are quoted in Nicole Macintyre's blog, very cool, which explains the spike in guest viewership here......

http://hallmarks.thespec.com/

[Millstone]

Just so that you guys are aware some are quoted in Nicole Macintyre's blog, very cool, which explains the spike in guest viewership here......

http://hallmarks.thespec.com/

Neat, I was quoted in something.

[SteelTown]

This temporary layoff has got to be the worst, you don't know when the plant will restart back open. You could run out of EI by the time the plant restarts, what are you suppose to do then? Look for another job? I rather have them layoff off people or completely shut the plant down permanently so we can move on.

[MsMe]

If per say they did go belly up. They should try and keep the land and lease it out to be used for whatever. This way they could at least regain some money back on what they have lost.

[emge]

That doesn't make any sense, MsMe. By that logic, you would rather that a company owned by Americans makes money off land here with no benefit to local people whatsoever... instead of selling it to be reused for new properties, new housing, new taxes from that to support the city of Hamilton and new jobs to employ people who have been laid off as well as others.

[MsMe]

I keep forgetting it's US owned now. To me it will always be Stelco. Good point. :)

[hmagazine]

Hope?

http://www.nytimes.com/2009/02/01/us/01braddock.html?fta=y

[emge]

Neat, I was quoted in something.

yeah, it is kind of neat... and I noticed I had mentioned the wrong park. I meant Eastwood Park :P

[oldcoote]

Hope?

http://www.nytimes.com/2009/02/01/us/01braddock.html?fta=y

like this quote:

All this is movement in the right direction, but the uninhabited buildings are still falling down. Dozens are scheduled for demolition. “If struggling communities don’t preserve their architecture,” Mr. Fetterman said, “there’s no chance of any resurgence down the line.” Sometime soon, he worries, Braddock will pass the point of no return.

Great video too.

[oldcoote]

This temporary layoff has got to be the worst, you don't know when the plant will restart back open. You could run out of EI by the time the plant restarts, what are you suppose to do then? Look for another job? I rather have them layoff off people or completely shut the plant down permanently so we can move on.

I'm hearing whispers that it's not temporary.

[SteelTown]

I would rather have them telling us it's permanently shutting down so we can move foward and start planning short and long term for the Stelco land.