Tenaris announced on September 13, 2016 that production will resume at its AlgomaTubes seamless mill, recalling between 120-150 union employees who were laid off earlier this year. Tenaris projects the mill to restart in November.
Production was temporarily interrupted at the facility in March due to the impact of unfairly traded imports and a prolonged industry downturn.
While market volatility persists, a modest improvement in Tenaris’s forecast, as well as progress in ongoing policy discussions with members of the federal and provincial government that support Canadian manufacturing drove the decision to commence operations.
Production at AlgomaTubes will support Tenaris’s Rig Direct™ service model in Canada, working directly with customers to synchronize OCTG manufacturing with drilling operations.
“We are cautiously proceeding to restart Algoma, understanding the environment of today remains difficult,” said Guillermo Moreno, Tenaris Vice President and Managing Director, Canada, “We thank our employees for their commitment to Tenaris.”
Tenaris has communicated to employees and informed the Union, in accordance with the Collective Agreement in place.
Tenaris has maintained its focus on strengthening its position in Canada. In July, it broke ground on a new service center in Grande Prairie, AB, from which it will provide Rig Direct™ services, including pipe inspection and management of delivery and return of pipe and accessories. Tenaris’s domestic presence, including the AlgomaTubes mill, the Prudential mill and the Nisku threading and accessories facility, and its regional service centers, are critical to the deployment of this new business model which aims to make its oil and gas customers’ operations more efficient.