Despite some pessimistic words from the president of US Steel – at least one analyst still doubts the operations in Hamilton and Nanticoke will soon be shut down.
Company President Mario Longhi says the Canadian operations are squarely in the sights of the company’s cost cutting plan.
He says the the plants are “challenged” money losers that have to be reshaped.
Although, DeGroote School of Business Professor, Marvin Ryder, says those comments can lead to speculation that the Canadian plants will be closed or sold, he believes there are still reasons to be optimistic.
He says the car companies like the Zinc Coating Line at the Hamilton facility and Nanticoke is still considered to be a modern efficient facility.
He points out U.S. Steel spent a billion dollars to purchase the Canadian facilities, and he says large corporations don’t like to walk away from those kinds of investments.