Tenaris Reduces Production at its AlgomaTubes Facility

File Photo

Tenaris announced on November 29, 2018 it is reducing production levels at its seamless pipe manufacturing facility in Sault Ste. Marie, Ontario by 25 per cent as a result of market challenges. Accordingly, Tenaris anticipates the temporary layoff of approximately 90 union employees as of December 15, 2018. Tenaris communicated with employees and union executives during a town hall today.

The market is challenged by three main factors: a surge in energy tubular imports diverted to Canada by third countries constrained from exporting to the United States due to Section 232 measures; a decline in AlgomaTubes’s export sales to the United States; and, challenges in the national oil and gas market where export bottlenecks are affecting the price Canadian oil and gas customers are receiving for energy production.

“These are difficult decisions that have resulted from high volumes of energy tubular imports, trade actions against Canada that remain unresolved, and Canadian oil and gas producers activity adjustments due to the widening price differential for their energy,” said Guillermo Moreno, President – Canada, Tenaris. “Our production levels remain above those in 2016 when we resumed operations. We are trying, where possible, to reduce the impact to our employees. We remain committed to domestic manufacturing and serving Canada’s energy industry.”

To adjust to the circumstances, Tenaris’s AlgomaTubes facility will suspend operations for three weeks effective December 15, 2018. Operations will resume January 7, 2019.

Tenaris continues to work with industry and governments to defend against steel import surges, and fight for steel access to the U.S. market and get Canada’s energy to market.

For more information about Tenaris, please follow us on FacebookTwitterLinkedIn, and Instagram.

Stay tuned to SaultOnline for updates as they become available.


  1. Any time for a lay-off is not good. Being forwarned may change overspending at this time of the year. How sad for families envoved.

  2. I HOPE people read this article properly unlike sootoday followers. The layoff is Not because of Trump. I mean hey I dont like him either!
    However if we had a leader with some guts we would stop the chinease imports of cheap crummy steele coming into our country. We are allowing the biggest polluter of the world to gain access to our market and rape our jobs and livelyhood. FOR SHAME on our Canadian leader.
    Hundres of Canadian jobs are being lost and the big Canadian worry is Canada Post and their pot deliveries.
    I say stop the imports also, stop buying Cars that dont support Canadian jobs. You dont produce here no sale. Start buying and standing up for Canada.

Comments are closed.