Why Is Canada Injecting $5 Million Into Tenaris Algoma Tubes and What Do They Do?
Eastern Canada

Why Is Canada Injecting $5 Million Into Tenaris Algoma Tubes and What Do They Do?

Tenaris Algoma Tubes, The Sault Ste. Marie steel pipe manufacturer’s facility to create 75 full-time jobs  

Advanced manufacturing is a cornerstone of Canada’s economy, producing important goods for the domestic and international markets while supporting well paying jobs for Canadians across the country.

As technology transforms manufacturing, Canadian companies are innovating and modernizing their processes to stay on the cutting edge. This involves transforming operations, adopting advanced automated equipment, investing in research and maintaining a highly skilled workforce.

Today, Terry Sheehan Parliamentary Secretary to Mélanie Joly Minister of Economic Development announced a repayable contribution of $5 million to help consolidate Tenaris’ pipe manufacturing operations in Canada into one location at Algoma Tubes in Sault Ste. Marie. Algoma Tubes is Canada’s only seamless steel pipe manufacturer that uses advanced manufacturing technologies to produce differentiated pipe products for Canada’s oil and gas sector.

Why Is Canada Injecting $5 Million Into Tenaris Algoma  Tubes and What Do They Do?

“Our government is proud to support the steel industry in Sault Ste. Marie, which employs thousands in our community. This investment will provide Tenaris with the opportunity to expand Canadian manufacturing in Sault Ste. This is indeed a win-win for the region and the country.” – Terry Sheehan, Parliamentary Secretary

This builds on a 2019 commitment by the Government of Canada to support Tenaris’ $36-million investment in its Canadian manufacturing capabilities, including the expansion of the capacity of Algoma Tubes in Sault Ste. Marie.  

The secured investment is being provide through FedNor’s Regional Economic Growth through Innovation Program, this targeted investment in manufacturing will create a world leading steel pipe industrial centre to support Canada’s energy sector with more competitive products.

Specifically, this investment will assist to construct and equip a mill in Sault Ste. Marie with an electric resistance welded line for the manufacture of welded pipe. In addition, the funding will help with information technology improvements to increase automation and productivity. This strategic investment is expected to create 50 jobs during the construction phase and 75 new full-time jobs by the end of 2021.

“We are investing in our Canadian operations in Sault Ste. Marie to ensure the sustainability and global competitiveness of Tenaris in Canada, and preserve manufacturing jobs in the region. Today’s announcement will strongly position Tenaris’s Algoma Tubes pipe manufacturing center to supply more domestically produced solutions for our customers when market activity stabilizes.”
– Ricardo Prosperi, Chief Executive Officer, Tenaris Canada 

Today’s announcement builds on the Government of Canada’s commitment to Canadian businesses – helping them to overcome difficult economic challenges compounded by the global pandemic. Initiatives like these will help enhance manufacturing capacity and increase production facility efficiencies.

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