Steel Mills

Stelco Sale to Bedrock Goes to Court for Approval
Written by Sandy Williams
December 11, 2016
Stelco, the former U.S. Steel Canada, has officially requested to be sold to Bedrock Industries after more than two years in Canadian creditor protection.
“Ontario welcomes this latest development in the effort to restructure Stelco as an important step toward saving 2,100 jobs, protecting pensions and supporting economic development in the Hamilton region while ensuring environmental protection,” said the Ontario’s minister of finance, Charles Sousa, in a press release.
The restructuring plan will preserve 2,100 jobs at the Lake Erie and Hamilton Mills and continue the pension plans and post-employment benefits for retirees.
United Steelworkers Local 8782 and 8782(B), United States Steel and Ontario said they will support the deal, subject to some conditions regarding pensions and benefits.
“Entering into a PSA with Bedrock is a major step forward as efforts to reach a going-concern transaction keep gaining momentum,” said Bill Aziz, Chief Restructuring Officer, Stelco. “Constructive engagement from interested stakeholders is welcomed and appreciated. At Stelco, our focus continues to be on working with Bedrock and other stakeholders to complete the court-supervised restructuring, subject to various approvals.”
The restructuring framework includes strengthening the pension plans through various lump sum and ongoing contributions by the company, resulting in up to $430 million of new funding for the pension plans, $160 million of which is guaranteed directly by Bedrock.
According to the restructuring summary, the Stelco lands will be transferred to a land trust that will be governed by the pensioners. The province will receive US $61 million for environmental cleanup of the land and provide a $10 million fully secured loan to start operations for the land trust. The lands will be sold, leased or developed with the proceeds going to fund the pension plans and other post-employment benefits (OEPBs). The province will also provide a loan of up to $66 million to ensure there is enough funding for the OEPBs while the lands are developed and the new company is established.
The final terms for the sale of Stelco to Bedrock will be brought before the court for approval.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Steel Summit: Burritt says USS and Nippon are fast-tracking modern steelmaking
U.S. Steel President and CEO David Burritt told audiences at SMU's Steel Summit 2025 that the iconic American steelmaker’s partnership with Nippon Steel is fast-tracking smarter steel production.

Nucor moves to stop HRC price slide with $10/ton hike
Nucor is attempting to halt the decline in hot-rolled coil prices with the announcement of a $10-per-short-ton increase in its weekly consumer spot price on Monday.

Explosion rocks ArcelorMittal’s DR plant in Mexico
ArcelorMittal reported a "strong" explosion at the direct reduction part of its massive Lazaro Cardenas mill in Mexico.

SDI to acquire remaining stake in New Process Steel
Steel Dynamics Inc. (SDI) announced that it has agreed to acquire the remaining 55% equity interest in New Process Steel.

North Star results improve despite buyer caution as tariffs drive prices higher
North Star BlueScope said it is optimistic that US tariffs will bolster selling prices and tighten the spread the Australia-based steel maker suffered in 2025.