Nova Steel Temporarily Lays Off 36 Workers Amid Challenges from Imported Steel

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Nova Steel has announced the temporary layoff of 36 employees at its Montreal facility due to ongoing challenges posed by unfairly traded steel imports. The company calls for stronger trade policies to protect the domestic steel industry.

Montreal – Nova Steel, the sole Canadian manufacturer of standard steel pipe utilized in plumbing, heating, fire protection, mining, water well casing, and fencing, has declared a temporary layoff affecting 36 employees at its Saint-Patrick facility, effective November 13. The decision arises from the prolonged impact of "unfairly traded steel pipe imports" that have plagued the company for several years, prompting it to initiate trade cases to combat the issue. In a recent statement, the company emphasized that despite investing over $200 million in advanced technology and modern facilities, it still holds less than a 25% market share in Canada.
Scott Jones, president and CEO of Nova Steel, expressed concern over the impact of this decision on the affected employees and their families, stating, "We are a proud supporter of the domestic steel industry and use Canadian-produced hot rolled coils to manufacture our standard steel pipe. We will not engage in a race to the bottom and resort to purchasing imported hot rolled coils to compete with unfairly traded imports. Our commitment lies in investing only in products that can be supported by domestic steel both in Canada and the United States."
The company’s backlog for standard steel pipe has significantly decreased due to a surge in unfairly priced imports, leading to the regrettable necessity of cutting shifts and laying off staff at a particularly challenging time of year. Jones noted, "These pressures on our company have real consequences for our colleagues and their families. The layoffs are temporary for now, but if no new measures to address unfairly traded imports are taken in the next two or three months, they could become permanent and lead to more layoffs."
In light of these challenges, Nova Steel is urging the federal government to take decisive action by strengthening trade policies and enforcement mechanisms to mitigate the damage inflicted by dumped imports. The company advocates for a North American fortress approach to steel and calls for the reinforcement and enforcement of Buy Canada mandates across all levels of government, including provincial and municipal projects. Additionally, Nova Steel seeks to incentivize private sector projects that utilize steel to prioritize Canadian-made products.

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