Tenaris Investing in Sault St Marie in Ontario in Canada
Tenaris has announced a CAD 81 million investment in its pipe manufacturing operations in Canada, with its hub in Sault St Marie in Ontario, to better serve the domestic energy industry. Through the investment in electric resistance weld line in Sault Ste Marie, Tenaris will be able to offer Canadian oil and gas customers longer welded pipes to improve the efficiency of their operations. Tenaris customers can also expect new steel grades and premium connections as the ERW line is strategically positioned on site along with the company’s existing seamless pipe manufacturing, heat treatment, testing, and threading operations. By concentrating its pipe manufacturing in Canada at its mill in Sault Ste Marie, Tenaris will optimize efficiency in production, utilization and costs, integrate new and upgraded equipment while incorporating digitalization and streamline its supply chain through shorter material product yard logistics.
Ontario Government has played in making this investment possible including their CAD 5 million participation in this new industrial transformation and their CAD 4 million CAD participation in 2019 to expand product capabilities and operational performance of its Algoma Tubes plant. Together, the Northern Ontario Heritage Fund Corporation is contributing CAD 9 million in these two investments.
This builds on last summer’s investment of CAD 36 million at Tenaris’s Algoma Tubes plant, including a premium connections line nearing completion, for a total of CAD 117 million.
The transformed Tenaris pipe manufacturing center will continue to be supported by the company’s threading facility in Nisku in Alberta, service centers Grande Prairie, Sherwood Park, and Red Deer in Alberta, Bienfait in Saskatchewan and by the company’s Canada headquarters, which will remain in Calgary in Alberta.