HAMILTON – U.S. Steel says an Ontario court has approved a transition plan that will help it separate from its Canadian branch.
The company says highlights of the plan include U.S. Steel not generating any sales on behalf of U.S. Steel Canada and moving away from providing any technical and engineering services associated with product development or sales with the Canadian arm.
U.S. Steel Canada – which owns the former Stelco operations – employs about 2,000 people at the Hamilton Works in Hamilton and Lake Erie Works in Nanticoke, Ont. It has been operating under court protection since last year while attempting to reach a compromise with its creditors.
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Ontario finance minister Charles Sousa says the transition U.S. Steel Canada is undergoing is having a tremendous impact on retirees and families who rely heavily on health benefits provided by the company.
He says the province is providing $3 million to establish a transitional fund administered with the support of the company and union representatives.
Sousa says as the restructuring continues, it is important to remember that the company is still operating and retirees are still receiving their pensions.
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