Essar Global is reportedly eyeing both Thunder Bay and Sault Ste. Marie for a wide diameter pipe mill to supply the oil and gas industry.
The proposed plant could provide more than 200 jobs.
The India-based industrial conglomerate bought Algoma Steel in 2007 and has been in full acquisition mode across North America.
United Steelworkers Union representatives in the Sault say they were kept out of the loop on the proposal and worry the plant may be located elsewhere.
Essar Algoma spokeswoman Brenda Stenta said the business case for a pipe mill has been under development for some time, but nothing has yet been finalized.
She would not confirm that either the Sault or Thunder Bay are in the running. "Several locations are under consideration."
She would not provide any timelines on a decision.
"The decision whether or not we proceed, and where, will be contingent on the economic benefits it will bring to the business."
Stenta said a wide diameter pipe mill would produce API (American Petroleum Institute) grade steel or stronger, "very likely," to the Alberta oil industry.
Sault MPP David Orazietti is reportedly lobbying Ontario Economic Trade and Development Minister Sandra Pupatello to access $23 million in job creation funding. The two MPPs for Thunder Bay say they've not been involved in any discussions with Essar on locating a plant in northwestern Ontario.
"If Essar were coming we'd be delighted to have them," said Thunder Bay-Atitokan MPP Bill Mauro.
Michael Gravelle, Thunder Bay-Superior North MPP and the Northern Development and Mines Minister, said he was in the Sault in late July for a meeting with Essar officials but the subject of a pipe mill never came up.
