Tenaris announced on January 24, 2019 that it will make adjustments to production at its facilities in Sault Ste. Marie, ON, and Calgary, AB, as well as implement staffing changes due to persisting volatile market conditions.
Tenaris will lay off 95 employees at its seamless pipe mill in Sault Ste. Marie, ON, effective February 4, 2019. The company will also temporarily suspend operations at its welded pipe mill, Prudential, in Calgary, AB, for a period of approximately six to eight weeks, starting at the beginning of March. A small crew will remain onboard during this period to foster improvements to production lines and perform general maintenance to assure the mill is in top-notch condition for restart.
Additionally, the seamless pipe mill in Sault Ste. Marie, ON will temporarily suspend operations for a two-week period in March in order to perform regular annual maintenance activities.
The Canadian oil and gas market remains challenged by a surge in tubular imports from non-NAFTA countries that is contributing to a pipe inventory overhang. Additionally, the market is experiencing a relevant reduction in drilling activity as the result of export bottlenecks due to pipelines at capacity in the country and the unstable price of oil.
“It continues to be a difficult time for our industry. We value our employees and we are working to minimize the impact and stay well positioned for an eventual turnaround. Tenaris plays an important role in Canada’s domestic manufacturing and our commitment to supply and serve the industry remains strong,” says Guillermo Moreno, Tenaris President, Canada.
In December, production at AlgomaTubes in Sault Ste. Marie was decreased by 25 percent, resulting in staff changes. At the Prudential mill in Calgary, Tenaris was also forced to temporarily lay off 15 people from the half weld crew shift, effective January 11.
Tenaris will continue to work with all levels of government to defend against steel imports saturating the Canadian energy market and to strengthen manufacturing in the country.