Canada Metal Processing Group Announces Workforce Reductions Amid Tariff Threats

BROSSARD, Québec, Feb. 24, 2025 (GLOBE NEWSWIRE) — Canada Metal Processing Group (MPG Canada) and its subsidiaries, Ivaco Rolling Mills, Sivaco, and Infasco, have announced difficult but necessary measures to address the current market environment and the looming threat of U.S. tariffs on steel and steel derivatives. The actions are intended to sustain most of the company’s operations and workforce while responding to the adverse impacts these threats are already having on demand for their products, which are directed to American clients through Canadian customers.

Anticipating a decline in demand and production volume due to the potential U.S. tariffs and challenges from increased imports, MPG Canada will reduce its workforce by 140 employees in Ontario and Quebec. The measures include implementing cost-reduction strategies and suspending or canceling some projects. These steps are aimed at ensuring MPG Canada remains competitive in serving its clients and protecting the business in the short term.

“This decision has been extremely difficult for our company and was not made lightly, but it is necessary in the current environment,” said Matt Walker, president of MPG Canada. “Our employees are the backbone of our operations. They work hard, day in and day out, to produce steel products recognized for their quality and to provide exceptional customer service while being an integral part of the Canada-U.S. supply chain.”

The weak market conditions in 2024, low North American macroeconomic demand tied to an upcoming U.S. election year, increasing challenges from unfair imports in Canada, and the imminent threat of a 25% tariff on steel and all Canadian products entering the U.S., continue to seriously impact the demand for MPG Canada’s products.

“While it’s impossible at this stage to predict how long these U.S. actions will last, the Canadian government must be prepared to respond swiftly to safeguard the long-term viability of Canadian steel manufacturers and the job security of our employees,” Walker stated. “Maintaining a healthy domestic steel industry and its customer base, which transforms raw steel into other steel products, is crucial for the economic stability of a sovereign, independent nation. Steel is fundamental to producing components for essential industries such as defense, energy supply, both fossil fuels and green energy, and the majority of industrial manufacturing including automotive, transportation, heavy equipment, and construction of housing and infrastructure.”

In response to the threat of U.S. tariffs, and as advocated by the members of the Canadian Steel Producers Association (CSPA), MPG Canada is calling for the Canadian government to take immediate action.

About Canada Metal Processing Group: MPG Canada, part of The Heico Companies, operates three businesses (Ivaco Rolling Mills, Sivaco, and Infasco) across six manufacturing sites in Quebec and Ontario, employing approximately 1,600 people. The organization runs an electric arc furnace (EAF) steel mill, a billet casting plant, a two-strand wire rod mill, a wire processing facility, two wire plants, a bolt manufacturing plant, a nut manufacturing plant, and a coating facility for steel fasteners. MPG Canada strives to provide the best customer experience by delivering high-value, sustainably designed steel products throughout North America.

For media inquiries, contact: Frédéric Perron, Director of Marketing and Business Development, Canada Metal Processing Group, a division of The Heico Companies, [email protected].