City councilor Mr Sam Merulla wants US Steel executives to explain their vision of the future of the former Stelco plant in Hamilton.

In a motion to be presented to city council next week, the Ward 4 councilor Mr Merulla demands executives be summoned to explain why the company is keeping its Hamilton steel making operation idle while running its American plants near capacity.

He said that "I want them to provide an update on their intentions for Hamilton. It's clear to me that politics is at play here. In a federal election year in the United States they are going full tilt on their American plants."

In an update to financial analysts, US Steel chairman Mr John Surma said that the company's American plants are operating at 90% of their capacity, but the blast furnace in Hamilton will remain idle until there is a major improvement in steel demand.

He said that that won't happen during the first quarter of 2012. With economists calling for an economic slowdown later in the year, the outlook remains bleak for Hamilton.

Hamilton's coke ovens, cold mill and Z line coating operations are active, providing support for the American plants. The decision not to restart the blast furnace means about 200 steel workers are facing the prospect of a layoff notice in March or April 2012 when they finish the 26 weeks of work they were guaranteed when their long lock out was settled in October 2011.

While Mr Merulla blames American politicking for the idling of the Hamilton plant, local MPs point their fingers at Canada's federal government for refusing to get tough with the company for breaking the employment and production promises it made in 2007 when it was given approval to buy Stelco.

Industry minister Mr Christian Paradis' communications director Mr Richard Walker defended the government's decision to drop legal action against the company in exchange for promises of more investment in the future.

(Sourced from www.thespec.com)