Ontario’s steel sector reached a significant milestone this week as the province marked the first shipment of made-in-Ontario steel destined for construction of Canada’s newest Canadian Coast Guard icebreaker, underscoring the role of domestic manufacturing in national security, interprovincial trade and economic growth.
At a ceremony in Sault Ste. Marie, the provincial government joined industry leaders to celebrate the shipment of steel plate from Algoma Steel to Davie in Quebec. The steel will be used in the construction of the Polar Max, a next-generation icebreaking vessel for the Canadian Coast Guard being built under Canada’s National Shipbuilding Strategy.
George Pirie, Ontario’s Minister of Northern Economic Development and Growth, said the shipment highlights how Ontario’s steel industry is supporting the province’s broader strategy to strengthen domestic supply chains, unlock trade within Canada and protect the economy from the impacts of U.S. tariffs.
“Not only is our government’s support of Algoma Steel safeguarding the northern economy, but it is also putting a spotlight on Ontario’s steel manufacturing capabilities and contributing to Canada’s defence infrastructure,” Pirie said. “We’re enabling Algoma Steel to successfully navigate changing market conditions and U.S tariff impacts, while simultaneously playing an important role in Canada’s security. We’ll continue making every effort to use and promote Ontario steel wherever possible.”
Algoma Steel will supply a total of 600 net tons of high-quality steel plate for the Polar Max project. The company is one of North America’s leading producers of armour plate, and the shipment comes as global defence spending rises and governments look to secure reliable domestic suppliers for critical infrastructure.
Ontario officials say the province is well positioned to respond to that demand. More than 70 per cent of Canada’s steelmaking capacity is located in Ontario, supporting over 16,000 direct jobs and an estimated 55,000 indirect jobs. The sector is a cornerstone of the province’s advanced manufacturing base and a key contributor to northern and southern Ontario economies alike.
“Algoma Steel is proud to supply Canadian-made steel for programs that matter to Canadians,” said Rajat Marwah, chief executive officer of Algoma Steel Inc. “This partnership supports skilled jobs in Ontario and strengthens the industrial foundation Ontario and Canada needs to build and maintain critical assets for the future.”
For Davie, the shipment represents a critical step in delivering what the company says will be the world’s most powerful and advanced conventional heavy icebreaker when completed. The Polar Max contract was awarded in March 2025, with delivery targeted for 2030.
“Davie is proud to deliver the world’s most advanced icebreaker by ensuring we are maximizing the involvement of the strong Canadian manufacturing base behind it,” said James Davies, chief executive officer of Davie. “Working with Algoma puts Canadian steel at the heart of Davie’s shipbuilding capability, strengthening the shipbuilding ecosystem and supporting skilled jobs in Quebec and Ontario.”
Provincial ministers framed the project as an example of how Ontario manufacturers can support Canada’s defence and sovereignty objectives while opening new trade opportunities.
“As global defence spending reaches new highs, Ontario manufacturers are well equipped to meet the growing demand and support Canada’s national security needs,” said Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade. “This milestone shipment from Algoma Steel underscores the important role Ontario’s steel sector and steelworkers play in unlocking new trade and market opportunities for the Canadian economy and will further position the province at the forefront of next-generation naval solutions.”
David Piccini, Minister of Labour, Immigration, Training and Skills Development, said the shipment highlights the contribution of Ontario workers to national projects.
“This milestone is a powerful reminder that Ontario steelworkers are helping deliver nation-building projects that protect Canada’s future,” Piccini said. “From Northern Ontario to Quebec, Ontario-made steel is helping build the Canadian Coast Guard’s next generation of icebreakers – strengthening Canada’s sovereignty while supporting good-paying jobs here at home. Our government is proud to stand shoulder to shoulder with Ontario’s steel sector by protecting workers, investing in modern skills and infrastructure and ensuring our province remains self-reliant.”
The province is backing the steel sector through targeted investments and procurement policies, including the Buy Ontario Act, which prioritizes Ontario-made products in public projects. Officials say these measures are designed to help manufacturers remain competitive, strengthen supply chains and capture new opportunities in global markets.
As Ontario continues to respond to what it calls unjustified U.S. tariffs with targeted strategies, the Polar Max shipment stands as a tangible example of how domestic manufacturing, interprovincial collaboration and public investment are converging to support economic resilience and long-term growth.
