Sorel – Rio Tinto Shuts Down Plant Resulting in 210 Job Losses
Rio Tinto Fer et Titane Announces Closure of Sorel-Tracy Metal Powders Plant, Resulting in Job Losses
Impact of the Strategic Review on Rio Tinto Fer et Titane
Rio Tinto Fer et Titane has announced the closure of its metal powders plant in Sorel-Tracy, leading to the loss of 210 jobs. The decision is attributed to a declining market for metal powders and reduced sales, intensified by an ongoing strike at the plant since July. This facility is part of Rio Tinto Fer et Titane’s operations currently undergoing a strategic review by the parent company, Rio Tinto, which may result in divestment.
Union Response Amid Labor Dispute
The union representing the plant’s employees, who have been on strike since July 10, expressed disappointment over the timing of the closure announcement amid an industrial dispute. Nicolas Lapierre, the Quebec director of the Métallos union, part of the FTQ, stated, “We understand this decision comes amid challenging international trade pressures and global overcapacity.” The union criticized the use of strikebreakers, a decision the Quebec Labor Administrative Tribunal recently ruled against.
Continuing Operations and Future Outlook
Before the closure announcement, Rio Tinto Fer et Titane employed 1,700 workers across its metallurgical complex and critical minerals operations in Sorel-Tracy, as well as mining activities in Havre-Saint-Pierre. Despite the closure, mining and port operations will continue in Havre-Saint-Pierre, along with the production of titanium dioxide, high-purity iron, steel billets, and scandium oxide in Sorel-Tracy.
Plant Closure Timetable
The strategic review, expected to conclude by the end of 2025, could lead to the sale of this division. The metal powders plant is set to close by the end of 2025, although the company plans to fulfill its existing contracts and supplier agreements during this period.
Challenges in the Automotive Industry
This plant supplied metal powders primarily to the automotive industry, particularly for combustion engines. As the industry shifts to electric vehicles, demand for these powders has diminished. Additionally, ongoing trade tensions, particularly due to the U.S.’s commercial policies, have further weakened the industry, although metal powders remain untariffed.
