ArcelorMittal’s decision to permanently close its Hamilton, Ontario wire plant and consolidate wire drawing operations in Montreal marks a significant moment for Canada’s wire industry, with ripple effects across the broader steel sector. The closure, announced in June, will eliminate 153 jobs and end wire production at a facility that has served telecommunications, construction and automotive markets for decades.

While the move was described as being part of a restructuring to improve operational efficiency and long-term competitiveness, multiple media reports observed that it also underscored the unique pressures facing Canada’s wire segment, a sector that is distinct from “big steel” in both scale and market dynamics.

Of note, the decision comes on the heels of the U.S. doubling tariffs on steel and aluminum imports to 50%, a move that industry leaders and union officials alike say has accelerated job losses and squeezed margins. ArcelorMittal’s CEO, Stéphane Brochu, cited the need to “strengthen competitiveness and ensure better long-term profitability” as a driving factor, while union leaders described the closure as a “horrible day” for the workforce, many of whom learned of the news as they arrived for their shifts.

One industry observer, Murat Askin, principal at Staalx, a steel industry consultancy, observed that the Canadian steel industry is very much reliant on the U.S. market. “This includes wire and wire rod producers. Both Arcelor and Ivaco have announced job cuts and production reductions. So far, however, wire rod mills haven’t announced any dramatic plant closures. Canadian wire rod producers are prime suppliers for the cold heading quality wire rods that are mostly used in automotive applications. It’s difficult to move the supply to another international supplier that is not approved by automotive customers. Therefore, Canadian mills continue to ship to the U.S. with reduced quantities. The conditions, however, are not sustainable as no mill operates efficiently at half capacity.”

Unlike large integrated steel plants, wire mills are more exposed to market volatility and less able to absorb the shocks of tariffs and dumping. The Hamilton plant reportedly lost $2.6 million annually over the last five years, a figure attributed to both global price competition and declining demand.

Askin points out that “help may be on the way,” with Canada and Mexico in talks with the U.S. about potential trade remedies, including lowering tariffs or implementing a quota system. However, for Hamilton’s wire workers, these solutions may come too late.

Local officials, including Hamilton’s mayor, have called for urgent federal action, warning that the loss of specialized wire production capacity could have long-term consequences for both the city and Canada’s manufacturing supply chains.