Canada Threatens Cleveland-Cliffs with Sale of Stelco Plant

The Canadian government has given American company Cleveland-Cliffs 15 days to reverse its plan to cut jobs at the Stelco plant in Ontario. If the company fails to comply with the demand, the authorities will turn to the courts and seek to force the sale of the plant.

According to Industry Minister Mélanie Joly, the job cuts violate the commitments Cleveland-Cliffs made when it acquired Stelco. The company denies the government's accusation.

If no agreement is reached, Cleveland-Cliffs could face a fine of up to 10,000 Canadian dollars per day. A court-ordered sale of the plant would be a far harsher step on Canada's part.

The case is noteworthy for other foreign investors as well, since it is clear that the Canadian government strictly monitors the job-related commitments made by major companies when they make acquisitions.

Source: Reuters