Government of Canada injects $5 million in Tenaris Algoma Tubes

News release

FedNor investments in Sault steel pipe manufacturer’s facility to create 75 full-time jobs  

December 8, 2020 – Sault Ste. Marie, ON – Federal Economic Development Initiative for Northern Ontario – FedNor

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.

Terry Sheehan, Parliamentary Secretary to the Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for FedNor, today announced a Government of Canada 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.

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.  

Provided 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.

Today’s announcement is further proof of 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.

Quotes

“Canadian steel producers and workers are the economic backbone of communities from coast to coast and we are committed to supporting them. We recognize that a strong domestic supply chain for products that help produce oil and natural gas are critical to the Canadian industry, and as the fourth largest consumer of these products in the world, access to a secure supply of these products is critical. Today’s investment will secure a more stable future for the industry, while diversifying the economy and creating good paying jobs in Northern Ontario.”
-    The Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for FedNor 


“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. Marie, bolster innovation and further efforts to replace imports with Canadian-made products. In addition, the project will increase sales and strengthen the company's alliance with Algoma Steel, increasing the local industry`s competitiveness. This is indeed a win-win for the region and the country.”
- Terry Sheehan, Parliamentary Secretary to the Minister of Economic Development and Official Languages and Minister responsible for FedNor 

“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 

“I want to recognize and thank the Government of Canada for its support of Tenaris Algoma Tubes. This is a significant investment in our local economy and contributes to our efforts to strengthen our industrial sector. The City was pleased to support the project along-side the Sault Ste. Marie Economic Development Corporation, and looks forward to continue working with government and private sector partners to strengthen our local economy and create more job opportunities in Sault Ste. Marie.”
- Christian Provenzano, Mayor, Sault Ste. Marie 

Quick facts

  • The funding announced today is provided through FedNor’s Regional Economic Growth through Innovation Program, which supports projects that help companies with scale-up, commercialization, productivity and market expansion to become more competitive globally. 

  • Tenaris has an experienced team of experts in the field who have implemented several other projects of similar size and scope, including a recent $36 million investment in the Sault facility to increase productivity. 

  • In total, the company has invested $200 million in the Sault operation since 2000. 

Associated links

Contacts

Catherine Mounier-Desrochers
Press Secretary
Office of the Minister of Economic Development and Official Languages
catherine.mounier-desrochers@canada.ca

Kim Fewchuk
Communications Officer
FedNor
705-971-4112
kim.fewchuk@canada.ca 

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