Tenaris, with a contribution from the Federal Government, has announced a $36 million CAD investment to expand its product capabilities and improve its operational performance at its seamless and welded steel pipe mills to support domestic manufacturing for the oil and gas sector.
A majority of the funding will go toward the installation of a new premium connections Line, expanded capacity for sour service grades, and new outside diameters at AlgomaTubes in Sault Ste. Marie, ON.
“The development of Canada’s energy resources requires high quality OCTG products and expanding our service offerings is crucial to support the energy industry,” said Guillermo Moreno, Tenaris President, Canada. “The new investment will also strengthen our Rig Direct® business model with shorter lead times and increased flexibility, while improving our customer support.”
The new premium connections Line will thread TenarisHydrill proprietary Wedge and Blue® Series connections, offer sour service grades capacity for all the products Canada demands, and add capacity to produce a more complete diametre range. The infrastructure upgrades are projected for completion by the end of 2020. Once operating and at full capacity, Tenaris will add nearly 90 full-time jobs.
In addition to the AlgomaTubes investment, Tenaris also announced an improvement project at Prudential, its welded pipe mill in Calgary, AB. The funds will be used to upgrade ultrasonic equipment for line pipe testing to supply customer orders with increased inspection requirements.
The Canadian market has been challenged by a decrease in drilling activity of about 30 percent this year vs. 2018, market access pipeline shortages and a surge of non-NAFTA imports to Canada. The contribution from the Federal of government is important to moving forward with this investment at this time.
“We would like to recognize our stakeholders here with us today who have shown their support for the important role Canadian energy and a domestic manufacturing supply chain has to the Canadian economy,” said Moreno. “Tenaris remains committed to the safe, efficient development of the country’s energy resources, and these investments will help expand our product offer with domestic solutions.”
Joining Tenaris today representing the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development is the Honourable Bill Blair, Minister of Border Security and Organized Crime Reduction, Terry Sheehan, Member of Parliament for Sault Ste. Marie; Anthony Rota, Member of Parliament for Nipissing-Timiskaming, and other officials from the Federal government as well as industry leaders from the Canadian Steel Producers Association (CSPA), Canadian Manufacturers and Exporters (CME), Petroleum Services Association of Canada (PSAC), Canadian Association of Petroleum Producers (CAPP), and the Canadian Chamber network.
“Canadian steel producers and workers form the economic backbone of communities across our country. This investment will support over 600 workers at Tenaris and help it upgrade its AlgomaTubes and Prudential facilities, become more competitive and expand its product offerings,” said Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development.
“We are committed to supporting Canadian steel workers and the innovative, world-class products they produce. Our investment in AlgomaTubes will help strengthen the competitiveness of the steel sector for years to come, maintain Canada’s position in the global market and support jobs for middle-class Canadians,” said the Honourable Bill Blair, Minister of Border Security and Organized Crime Reduction.
“The steel industry is the source of thousands of well-paying middle class jobs in the Sault community. Our government is proud to support steel companies such as Tenaris as they upgrade their facilities to become more competitive and create and maintain those critical jobs in our local economy,” said Terry Sheehan, Member of Parliament for Sault Ste. Marie.
Tenaris is an active member of the communities where it operates. Tenaris encourages diversity and the development of skills necessary in the future for Canada, particularly in STEM (Science, Technology, Engineering, and Mathematics) education through the support of science fairs, robotics competitions, post-secondary scholarships and the Tenaris Robotics Lab at Sault College Ontario. Each year, Tenaris in Canada invests over $300,000 in these initiatives.