Presidents Message

President's Message - April 11, 2025

Mike Hnatjuk
April 12, 2025
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Good evening Brothers, Sisters, and Retirees,

Your committee met with the company yesterday for our monthly Company/Union Meeting. As many of you have already heard, there will be 10 layoffs next week. Additionally, we were informed that the following week will see 8 or more layoffs, as the company plans to move the Oil Temper department to 8-hour shifts, with the Test Room following suit.

The company is currently carrying a few extra bodies, and with some employees beginning to return from leave, further layoffs are expected. The company plans to inform the next group of affected employees early next week. This would bring the total number of members laid off to 30.

Capital Expenditures & Maintenance

The company shared some updates on capital expenditures (CapEx) planned for this year:

  • Descaler Installation at 28 Frame is scheduled for May.
  • Furnace electrical upgrades are underway, including work on the combustion air system.
  • Maintenance fixed cost control has been reduced to $180,000 (from $350,000–$400,000), meaning:
    • Less contractor use,
    • Reduced overtime,
    • A “fix what’s broken” approach moving forward.

July Shutdown Projects:

  • Furnace arch repair at the charge end
  • Start of backup generator installation at Substation A
  • Decommissioning of several electrical panels in the #1 Wire Mill basement

Additionally, the company plans to spend $400,000 on roof repairs in the Maintenance and Cleaning Line areas.

Work will also continue on 13 and 14 Frame, with the goal of starting to having them upgraded by early May, and full completion by the July shutdown.

Business Opportunities

The company provided some updates on new business developments:

  • ITW has announced the closure of their Bedford Wire Plant, which was a customer of AMLPC (our rod mill in Quebec), representing 12,000 tons annually.
  • Through proactive negotiations, Hamilton East has been awarded a significant contract for CHQ wire and rod, taking over 100% of the items that Bedford supplied to ITW.
  • Production starts next week, with 30 & 31 Frame running 3 shifts to draw wire for the furnace.
  • Most CHQ wire will be split between Hamilton and outside processor O&K, who will ship to the southern U.S. and Mexico.
  • Hamilton East is expected to hit 1,000 tons/month by end of Q2, scaling up to 12,000 metric tons by 2026.

There are also Class 2 Oil Temper opportunities in Western Canada, including:

  • New orders from Flexiforce (BC)
  • A potential contract with S3 Manufacturing (Swift Current, Saskatchewan)

The company also reports that Class 2 Garage Door Market pricing in the U.S. has increased by $80–$100 USD/ST over the past two months. If this trend continues, there could be opportunities to move existing inventory in Q2.

Market Risks & Challenges

Sales has flagged several ongoing risks:

  • The impact of tariffs on CHQ customer orders is still being assessed.
  • Many customers are in a “wait and see” mode due to the uncertainty.
  • Tariffs on vehicles produced in Canada are now a concern, as several automotive plants have announced temporary shutdowns.
  • One major customer, Kamax, is forecasting a significant decline starting in May due to these tariff surcharges.
  • Oil Temper inventories remain high, and due to a lack of safe storage, production will be reduced in April.

We understand that these are uncertain times, and we will continue to advocate for our members and provide updates as they become available.

In Solidarity,

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