Tenaris to invest in Sault Ste. Marie steel pipe facility with government support

Tenaris will invest $306 million to expand its steel pipe manufacturing facility in Sault Ste. Marie, with financial backing from the federal and Ontario governments.

The company said the investment will fund new equipment and upgrades aimed at expanding production, improving efficiency and broadening its product range at the Sault Ste. Marie Industrial Centre.

The project includes enhancements across the seamless and electric resistance welded manufacturing processes, including hot rolling, heat treatment, testing and finishing, as well as the addition of a new threading line.

Tenaris said the upgrades are expected to strengthen domestic production of oil country tubular goods used in Canada’s oil and gas sector, particularly for shale, thermal and offshore drilling.

The investment is expected to create up to 200 direct and indirect skilled jobs and support Ontario-based subcontractors.

“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,” said Martín Castro, president of Tenaris in Canada. “With this more than $300 million investment, on top of more than $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 and line pipe.”

Federal Industry Minister Mélanie Joly said the investment will help reinforce the domestic steel sector.

“Canada’s steel industry is a cornerstone of our economic strength and a driver of our industrial future,” she said. “At a time of rising tariffs and trade uncertainty, our government’s investment in Tenaris reinforces local manufacturing, creates good-paying jobs and delivers real, lasting benefits for the region and for Canada.”

Ontario Premier Doug Ford said the project reflects confidence in the province’s workforce and economic strategy.

“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,” said Ford. “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.”

Sault Ste. Marie Mayor Matthew Shoemaker said the investment reinforces the city’s role as a manufacturing hub.

“Sault Ste. Marie is proud to be at the centre of this milestone investment in Canada’s steel pipe and energy industries,” he said. “Today is another demonstration of Tenaris’s long-standing commitment to our city through its ongoing investments in not only our local organizations but also in reinforcing Sault Ste. Marie as a hub for advanced manufacturing in Ontario and across Canada.”

Invest in Canada CEO Laurel Broten said the expansion highlights the strength of the region’s workforce.

“Canada continues to stand out as a stable, predictable destination for global investment. The expansion of Tenaris’ operations in Sault Ste. Marie underscores the strength of Northern Ontario’s skilled workforce and industrial capabilities,” she said. “Invest in Canada was proud to support this investment, which will strengthen Canada’s energy supply chain and advance growth across the region.”

Tenaris employs more than 1,200 people in Canada, including about 800 in Sault Ste. Marie, where it produces seamless and welded steel pipes for domestic and offshore energy projects.