Today, Terry Sheehan, Parliamentary Secretary to the Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for FedNor, announced a Government of Canada repayable contribution of $5 million to help consolidate Tenaris’ pipe manufacturing operations 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.
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.
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.
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.