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Tenaris Algoma Tubes to lay off at least 40 employees

Sault company says layoffs are result of U.S.-imposed steel tariff
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Tenaris Algoma Tubes in Sault Ste. Marie is temporarily laying off approximately 40 workers effective July 1.

David McHattie, institutional relations for Tenaris Canada, confirmed with SooToday via email statement that the site is adjusting its production levels as a result of the 25 per cent tariff on steel imposed on Canada by the United States and "the effect of increased import competition in Canada from countries no longer able to sell in the U.S. due to the Section 232 action on them."

“The implementation of a tariff has created an unsustainable market to serve our U.S. customers,” McHattie said.

The employees affected by the layoffs, according to Tenaris, were hired in January 2018 as a response to the company’s increased operations at the time.

“The market outlook remains uncertain as we continue to understand the full-scale impacts of cross-border tariffs and due to the increase in imports to Canada from countries that have also lost the U.S. market as a result of the Section 232 action against them,” McHattie said.

Tenaris manufactures tubular line pipe products for the oil and gas sector and other industries.