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Sault pipe producer snags $5M in federal funds

Tenaris Algoma Tubes to spend $81 million on plant expansion, jobs to follow
Tenaris Algoma Tubes has secured $5 million in federal funds to aid in the expansion of its Sault Ste. Marie manufacturing plant. (Tenaris photo)

The federal government has announced a $5-million repayable contribution in support of Tenaris Algoma Tubes for the expansion of the company’s Sault Ste. Marie pipe-manufacturing operation.

FedNor announced the funds on Dec. 8.

It follows an earlier announcement from the province of $9 million for the company, bringing the total contributed by the upper levels of government to $14 million.

Sault Ste. Marie’s Economic Development Corp. is contributing $500,000 over two years.

This is all part of Tenaris’ plan to consolidate and expand its Canadian operations in Sault Ste. Marie, which manufactures pipes used in the oil and gas industry.

“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,” Tenaris CEO Ricardo Prosperi said in a news release.

“Today’s announcement will strongly position Tenaris’s Algoma Tubes pipe manufacturing centre to supply more domestically produced solutions for our customers when market activity stabilizes.”

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Tenaris has said that consolidating its pipe-manufacturing operation in the Sault will create production efficiencies and streamline its logistics chain.

The project involves the construction of a 30,000-square-foot addition onto its existing Sault plant, along with a number of upgrades to modernize the facility.

It’s expected to create 50 jobs during the construction phase and 75 new, full-time jobs by the end of 2021.

Tenaris’ other Canadian operations include a threading facility in Nisku, AB; service centres in Grande Prairie, Sherwood Park, and Red Deer, AB, and Bienfait, Sask.; and its Canadian headquarters in Calgary, AB.