The company has determined that it is necessary
"This is another way the company is taking all the value out of the Hamilton Works plant," said Scott Duvall, chair of the city's steel issues subcommittee.
U.S. Steel Canada announced to workers Monday that it is hot idling coke-making in the city, a move that affects 100 of the 600 workers at the plant.
"Due to the current operating configuration and surplus capacity of coke, the company has determined that it is necessary to temporarily idle the coke battery at Hamilton Works," Michael McQuade, president and general manager of U.S. Steel Canada Inc. wrote in an email to employees.
The letter does not indicate how long the coke operations will be idled.
"The battery will be hot-idled for a period of time while the restructuring process continues and appropriate options including the potential sale of the asset are considered by the chief restructuring officer."
U.S. Steel is under a court-monitored restructuring process under the Companies' Creditors Arrangement Act. The company has indicated in court documents that it plans to sell its Hamilton and Nanticoke plants by next October.
"While this decision is a difficult one, it is the appropriate next step as part of the CCAA restructuring process," wrote McQuade.
Duvall says it's "obvious they have a plan to dismantle the Hamilton plant. I'm not sure they want a buyer … the value has been sucked right out of it." Duvall said the city's top concern is job losses and effects on pensioners.