Rio Tinto has announced the closure of its metal powder factory located in Sorel-Tracy, resulting in the loss of 210 jobs. This decision was driven by a decline in the metal powder market and a significant drop in sales. The closure follows a strike that has been ongoing since July at the facility.
Details of the Closure
The factory’s impending closure is part of a broader strategic review within Rio Tinto, the parent company. Reports indicate that the company might divest from this segment entirely. The employees’ union expressed disappointment over the timing of the announcement, which coincides with an active strike.
Reactions from Union Officials
- Nicolas Lapierre, the Quebec director of the Métallos union, commented on the challenging market conditions.
- He stated, “This is a very difficult situation for the workers,” emphasizing the impact of international trade policies and overcapacity issues on the industry.
Production and Future Outlook
Prior to the closure announcement, Rio Tinto Fer et Titane employed approximately 1,700 individuals in Quebec across various operations, including its metallurgy and critical minerals sectors. While the metal powder factory will cease operations, other functions at the company will continue, including mining and port activities in Havre-Saint-Pierre, and the production of titanium dioxide, high-purity iron, steel billets, and scandium oxide at Sorel-Tracy.
Industry Impact and Strategic Review
The strategic review of the division continues and is expected to conclude by the end of 2025. This review could potentially lead to a sale of the division in the future. The metal powders produced at the Sorel-Tracy facility primarily served the automotive industry, particularly for combustion engines. However, demand has decreased as the industry shifts toward electric vehicles.
Despite the factory closure, Rio Tinto plans to fulfill existing contracts with customers and agreements with suppliers until the closure is finalized. The transition toward electric vehicles and uncertainty surrounding U.S. trade policies have contributed to a challenging environment for the metal powder sector.
