US Steel Puts Area Plants in Cross Hairs

Hamilton, ON, Canada / AM900 CHML

It’s the most definitive statement yet about the future of US Steel in this area.

Company President Mario Longhi says the operations in Hamilton and Nanticoke are squarely in the sights of the company’s cost cutting plan, but added that no final decisions have been made, yet, about restructuring.

However, Longhi also says the struggling company’s Canadian plants are “challenged”¬† money losers that have to be reshaped.

A conference call with industry analysts yesterday afternoon came after US Steel posted an 18 million dollar second quarter loss.

The Hamilton Spectator says in a recent SEC filing, U.S. Steel reported it had amended  agreements with American lenders to ensure a debt default in Canada would not trigger defaults in the U.S.

That move is seen by some as a first step in a plan to exit this country at the end of next year.

That’s when promises to operate in Canada expire, along with a special pension¬† funding arrangement with the Ontario government.

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