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Minister Joly announces major federal investment of $76.2 million in Tenaris's project to modernize and diversify its steel production
Modernization of Tenaris Sault Ste. Marie facility will expand domestic capacity for critical oil and gas materials
SAULT STE. MARIE, ON, May 22, 2026 /CNW/ - Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, accompanied by Terry Sheehan, Member of Parliament for Sault Ste. Marie–Algoma, announced a $76.2 million investment through the Strategic Response Fund in Tenaris's $305.9 million project to modernize its Sault Ste. Marie Industrial Centre, expanding and upgrading its specialized steel production capacity and increasing its long-term sustainability. The global economy is rapidly transforming, and the Government of Canada is making strategic investments to protect Canada's steel industry, support Canadian workers, and strengthen domestic industrial capacity as part of building a strong, resilient economy.
Today's investment will enable Tenaris to acquire new equipment, increase automation and upgrade existing production lines at its Sault Ste. Marie facility, while creating and maintaining over 1,000 well-paying jobs over the course of the project, which will support a strong workforce in Canada's steel industrial sector. Tenaris will expand production of tubular products for oil, gas and industrial markets by improving efficiency, increasing domestic capacity and diversifying products, while bolstering energy sovereignty, strengthening supply chains and building industrial resilience. The company will also introduce advanced technologies and digitalization, enabling the production of high–spec seamless tubular products designed for complex operating environments.
This announcement follows the measures to protect and strengthen Canada's steel industry announced by Prime Minister Carney on July 16, 2025, and Minister Joly's announcement on May 4, 2026, of a new $1 billion Business Development Bank of Canada program to support Canadian steel, aluminum and copper businesses affected by U.S. tariffs.
As Canada moves from reliance to resilience, the government is investing in the long–term sustainability of the country's manufacturing base and strengthening domestic supply chain security for key energy and infrastructure applications. Today's investment represents a significant step in the government's plan to position Canada's steel industry for lasting success.
Quotes
"Canada's steel industry is a cornerstone of our economic strength and a driver of our industrial future. Our government remains firmly committed to supporting the steel sector in Sault Ste. Marie. At a time of rising tariffs and trade uncertainty, our government's investment in Tenaris will reinforce local manufacturing, create well-paying jobs and deliver real, lasting benefits for the region and for Canada."
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
"Tenaris is a vital part of Sault Ste. Marie's industrial base, and today's announcement ensures that legacy continues to grow. This project will secure and create well-paying union jobs for steelworkers, while reinforcing our city's role at the heart of Canada's steel industry. The federal government and I will continue to stand up for this community, ensuring investments are made for its long-term prosperity."
–Terry Sheehan, Member of Parliament for Sault Ste. Marie–Algoma
"Tenaris's investment in Sault Ste. Marie is a strong vote of confidence in Ontario's world-class workers and in our plan to protect Ontario by building a more competitive and resilient economy. Our government will continue to stand up for workers in industries impacted by tariffs, both here in Sault Ste. Marie and across Ontario, by diversifying our economy, finding new trading partners and supporting new pipelines, rail lines and other projects that use Ontario steel to open up new markets for Ontario products around the globe."
– The Honourable Doug Ford, Premier of Ontario
"Amid global uncertainty, Ontario's stable, reliable and predictable business environment continues to instill confidence and attract job-creating investments. We congratulate Tenaris on this latest milestone and look forward to seeing northern Ontario's talented steel workers remain at the heart of its success."
– The Honourable Vic Fedeli, Minister of Economic Development, Job Creation and Trade
"In Canada, we know energy connects us. Tenaris steel pipes, manufactured in Ontario and delivered through our Rig Direct® service network to oil and gas operators across the country, enable Canadian energy sovereignty. With this more than CAN$300 million investment, on top of more than CAN$350 million invested since 2020, we illustrate Tenaris's steadfast commitment to Canadian manufacturing. Today's milestone builds on the momentum to expand Canada's domestic supply chain for OCTG [oil country tubular goods] and line pipe."
– Martín Castro, President of Tenaris in Canada
Quick facts
- Canada produces over 12 million metric tonnes of crude steel a year, with domestic steel operations directly employing some 23,000 people while supporting an additional 100,000 indirect jobs.
- In December 2025, the government unveiled a $1.3 billion plan for the lumber and steel sectors, aimed at competitiveness, freight–rate reductions and Buy Canadian procurement.
- Algoma Tubes (Tenaris) 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.
- The company began hot rolling pipe by late 2000. This made Tenaris the sole domestic producer of seamless oil country tubular goods (OCTG). In 2022, the company unveiled significant upgrades at the Sault Ste. Marie facility, including the addition of electric resistance welded (ERW) pipe manufacturing to the industrial centre.
- The Strategic Response Fund (SRF) helps Canadian industries innovate, adapt and compete in a changing global economy. The SRF supports large-scale, transformative projects that build economic resilience, strengthen supply chains and protect good jobs in key sectors such as steel, aluminum, automotive, forest products, AI and advanced technologies.
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View original content: http://www.newswire.ca/en/releases/archive/May2026/22/c2101.html
