BROSSARD, Quebec, Feb. 24, 2025 (GLOBE NEWSWIRE) — Canada Metal Processing Group (MPG Canada) and its subsidiaries, Ivaco Rolling Mills, Sivaco, and Infasco, are announcing the difficult but necessary steps to respond to the current challenging market environment and the threat of incoming tariffs from the United States on steel and steel derivatives. These measures will help maintain the majority of MPG Canada’s footprint and workforce while reacting to the impact that these threats are already having on the company’s demand for its products destined directly and indirectly, via our Canadian customers, to U.S. customers.
In light of lower anticipated demand and production volume, due to U.S. tariff threats and trade challenges in Canada with increasing imports, the measures include a workforce reduction of 140 production and office employees in Ontario and Quebec, implementation of cost savings actions, and the cancellation or pause of some projects. These steps will enable MPG Canada to remain competitive to service our customers and protect the business in the short-term.
“This was an extremely difficult decision for our company, and not one that was made lightly, but necessary for the business in the current environment,” said MPG Canada President Matt Walker. “Our employees are the backbone of our operations. They work hard, day in and day out, to create steel products which are recognized for their quality and good customer service while being an integral part of the Canada-U.S. supply chain.”
Soft market in 2024, weak North American macroeconomic demand linked to a U.S. election year, the increased challenge of unfair trade imports into Canada, and now the imminent threat of 25% U.S. tariffs on steel sector and 25% on all Canadian products into the U.S., are having serious impacts on the demand for MPG Canada products.
“While it is impossible at this juncture to predict how long these actions by the United States will last, the Canadian government must be prepared to react quickly to safeguard the long-term viability of Canadian steel product manufacturers, and the collective job security of our employees,” said Walker. “Maintaining a healthy domestic steel manufacturing industry and their customer base, who transform steel to steel products, is critical to the economic stability of an independent and autonomous sovereign nation. Steel is a foundational industry to produce core products and infrastructure for essential industries e.g., defence, energy supply both fossil fuels and green energy, majority of industrial manufacturing e.g., automotive, transport, heavy equipment and essential for housing and infrastructure construction.”
