Expansion Expected to Create 200 Jobs and Strengthen Ontario’s Steel Supply Chain
The Ontario government is backing a major new investment in Northern Ontario’s steel industry as Tenaris commits $306 million to modernize and expand its operations in Sault Ste. Marie, a move expected to create up to 200 new jobs and strengthen Canada’s domestic manufacturing capacity.
The announcement, made Thursday by the Premier’s Office, comes as governments and manufacturers continue responding to growing trade uncertainty and U.S. tariffs affecting the North American steel sector.
Tenaris, a global producer of steel pipe products for the energy industry, currently employs approximately 800 workers in Sault Ste. Marie. The expansion will introduce advanced automation and process upgrades designed to significantly increase production while expanding the company’s product offerings for Canadian energy and industrial markets.
“Tenaris’ 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 Premier Doug 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.”
Tenaris Expansion Aims to Reduce Dependence on Imports
Tenaris is currently the only Canadian producer of seamless oil country tubular goods (OCTG), specialized steel pipes used in drilling and completing oil and gas wells. The company said the expansion will help strengthen Canada’s domestic steel and energy supply chain while reducing dependence on imported products.
According to the province, the upgrades will increase manufacturing output at the facility by 80 per cent. Ontario is supporting the project with up to $72 million in funding through the Invest Ontario Fund.
“Amid global uncertainty, Ontario’s stable, reliable and predictable business environment continues to instill confidence and attract job-creating investments,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “We congratulate Tenaris on this latest milestone and look forward to seeing Northern Ontario’s talented steel workers remain at the heart of their success.”
The investment also aligns with broader provincial and federal efforts to strengthen domestic manufacturing and energy infrastructure development as Canada advances new natural gas, bitumen and industrial projects.
“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, enables 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’ steadfast commitment to Canadian manufacturing. Today’s milestone builds on this momentum to expand Canada’s domestic supply chain for OCTG and line pipe.”
Governments Highlight Importance of Domestic Manufacturing
Federal and provincial officials described the project as an important investment in Canada’s industrial and economic resilience at a time of increasing global market volatility.
“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 reinforces local manufacturing, creates good-paying jobs, and delivers real, lasting benefits for the region and for Canada,” said Mélanie Joly, Federal Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.
Ontario officials also emphasized the importance of Northern Ontario’s manufacturing sector to the province’s long-term economic strategy.
“It is great to see Tenaris expand their footprint in Sault Ste. Marie and build on a decades-long presence in Northern Ontario. This investment will create new opportunities for workers, enhance local manufacturing capabilities and ensure Ontario can continue delivering high-quality steel products that support Canada’s future,” said George Pirie, Minister of Northern Economic Development and Growth.
Stephen Lecce, Ontario’s Minister of Energy and Mines, linked the investment to broader efforts to expand Canadian infrastructure and energy development projects.
“With unprecedented risk facing Canada’s economy, our government believes strongly that we must build and buy more products made right here at home. This investment in Sault Ste. Marie is a major vote of confidence in our plan to keep taxes, red tape and energy bills down. From beginning construction on the first Small Modular Reactor in the G7 to advancing major transmission projects, our government is building big, building Canadian and building with Ontario steel,” Lecce said.
Local Leaders Welcome Long-Term Economic Impact
Municipal and economic development leaders said the expansion reinforces Sault Ste. Marie’s role as a key industrial centre in Northern Ontario.
“Tenaris has been a cornerstone of Sault Ste. Marie’s industrial economy for more than 25 years and this latest investment reflects continued confidence in their local workforce, our community and the future of manufacturing in Northern Ontario,” said Mayor Matthew Shoemaker. “At a time when many local workers and families are facing economic challenges, Tenaris is once again helping create new opportunities and supporting long-term economic stability.”
Khawar Nasim, CEO of Invest Ontario, said the agency worked closely with the company throughout the investment process.
“Tenaris’ expansion reflects the strength of Ontario’s manufacturing sector, and the vital role Northern Ontario plays in supporting Canada’s energy supply chain,” Nasim said. “We are pleased to support Tenaris as it looks to grow its operations and continue creating jobs in Northern Ontario.”
Ontario remains Canada’s largest steel-producing province, supporting nearly 16,100 direct jobs and more than 53,000 indirect jobs across the steel supply chain. Since 2018, the province says it has attracted more than $222 billion in investments supporting the creation of one million new jobs.