HAMILTON, Ont.—After nearly three years of restructuring and months of negotiations, Stelco Inc. has emerged from creditor protection under new ownership.
Late last week, Bedrock Industries Group officially closed its acquisition of the Ontario steel producer and formally changed the company’s name from U.S. Steel Canada back to Stelco.
“Today, after years of hard work, the sale of Stelco closed, ensuring its continued operation as a viable and growing company and as one of the world’s finest steel manufacturers,” Ontario Finance Minister Charles Sousa, said in a statement June 30.
“This outcome is a win for Stelco employees, pensioners, and the City of Hamilton.
The company had been operating under court supervision for 33 months under the Companies’ Creditors Arrangement Act.
The deal will sustain 2,200 jobs in Hamilton and Nanticoke, Ont. as well as ensure thousands of retirees and pensioners continue to receive benefits—though only partial benefits in many cases.
United Steelworkers union members voted to support the deal last month, clearing the last major roadblock to restructuring. The union’s leadership said the deal was not perfect, but that it was the “best-possible option” given the circumstances.
The province said it will keep working with Stelco and other stakeholders to ensure the terms of the deal are upheld.