U.S. Steel Canada, formerly known as Stelco, is temporarily shutting down its Hamilton mill and closing most of its Lake Erie operations, affecting up to 1,500 jobs according to the company.

U.S. Steel has already laid off close to 700 of the 1,700 hourly employees in Hamilton, where it shut down its blast furnace in November.

"It's devastating for the community," said Bill Ferguson, leader of the United Steelworkers union at the Lake Erie operations.

"For the local people this will be quite a blow. This plant, Lake Erie, has never shut down in its history."

The remaining operations at the Hamilton plant, including its steel finishing lines and coke ovens, will now be closed as well, said Rolf Gerstenberger, president of the United Steelworkers union at the plant.

Pittsburgh-based U.S. Steel, says on its website that production will be concentrated at the Mon Valley Works near Pittsburgh, Gary Works in Gary, Ind., and Fairfield Works near Birmingham, Ala.

The global steel industry has been hit hard by the recession, which has cut demand for steel used in construction, the auto and appliance industries and the capital goods sector.

In Canada, steelmakers such as the former Algoma Steel, Ipsco and steel distributor Russel Metals have cut jobs and streamlined operations to deal with the industry downturn.

United States Steel revised its fourth-quarter and full-year results downward by $18 million Tuesday due to corrections in valuing steel products that cost more to manufacture than their market prices.

The largest U.S.-based steel producer said its net income for the three months ended Dec. 31 was $290 million.