The Canadian Press reported that Canadian government is warning US Steel that it must live up to production commitments at Hamilton based Stelco Inc.

As per report, Mr Tony Clement Canadian industry minister said in a demand letter to the US steel maker that the temporary shutdown at two Stelco plants in southern Ontario may be in violation of commitments it made when it bought the Canadian steel producer in 2007.

He said that he recognizes today is a challenging time for business but adds the government expects US Steel to live up to commitments made under the Investment Canada Act. He added that the demand letter is the first step under the act's enforcement process.

He added that "I am concerned by the actions of US Steel in cutting operations in Canada and by the impact this will have on its workers. While I recognize that these are challenging economic times, we expect the company to live up to its commitments. I have sent US Steel a demand letter under section 39 of the Investment Canada Act, asking the company to comply with its undertakings."

It may be noted that in March 2009, US Steel announced plans to temporarily shut down most of its operations at two big former Stelco plants in Ontario, affecting up to 1,500 jobs.

(Sourced from The Canadian Press)