Tenaris is investing more than $300 million in pipe production in Canada

Tenaris is investing over 300 million Canadian dollars in the development of the Sault Ste. Marie Industrial Centre in Ontario. The project is being implemented with support from the Canadian federal government and the Ontario government and is intended to strengthen the domestic supply chain for pipe products for the country’s energy sector, according to a press release.

The investment received financial support through the federal Strategic Response Fund and the provincial Invest Ontario Fund. The announcement was made in the presence of Canadian Minister of Industry Melanie Joly, Ontario Premier Doug Ford, Provincial Minister of Economic Development Vic Fedeli, representatives from Sault Ste. Marie, and Tenaris executives.

The plan calls for expanding production, broadening the product range, and increasing productivity through the installation of modern equipment. The modernization will cover key stages of seamless and electric-welded pipe production, including hot rolling, reducing, heat treatment, testing, and finishing operations. In addition, the company will install an additional threading line for semi-premium and API fittings.

According to Martin Castro, President of Tenaris in Canada, the investment demonstrates the company’s long-term commitment to Canadian manufacturing. He noted that Tenaris steel pipes manufactured in Ontario and supplied through the Rig Direct network support Canada’s energy sovereignty. Since 2020, the company has already invested over 350 million Canadian dollars in the country.

The capacity upgrade is expected to boost production of OCTG and line pipes in Canada to meet the needs of the oil and gas industry, particularly for shale, thermal, and offshore drilling. The company emphasizes that expanding domestic capacity is crucial given the growing demand for a reliable supply of high-quality pipe products.

The Canadian government has identified the steel industry as one of the key elements of the country’s economic strength, particularly amid trade uncertainty and tariff pressures. The project is expected to create up to 200 direct and indirect skilled jobs in Ontario, as well as improve conditions for local contractors.

As a reminder, Tenaris recently announced the completion of a deal to acquire 100% of the shares in Romanian manufacturer Artrom Steel Tubes SA from the American company GLGH Steel. The total value of the deal is €86 million.