Steelmakers Set Investments at Canadian Mills
In separate statements, government officials said the financing will support projects at Gerdau bar mills in Whitby and Cambridge, Ontario; Tenaris’ seamless tube mill in Sault Ste. Marie, Ontario; and its welded pipe mill in Alberta.
Gerdau is undertaking an $81.2 million efficiency-oriented project through which it intends to modernize steel production lines and improve billet production capabilities.
"Gerdau is committed to innovation and to the advancement of strategic investments that improve our process efficiency, product offerings and environmental performance. This project will help us continue making world-class steel in Ontario," said Gerdau Long Steel North America president Chia Yuan Wang.
The government is contributing CA$20 million toward the effort. Meanwhile, Canada will provide CA$16 million for the Tenaris projects.
Those projects represent a CA$36 million investment, the majority of which is being directed toward AlgomaTubes in Sault Ste. Marie. There, Tenaris will install a new premium connections line, expand capacity to make tube grades suitable for sour oil and gas service, and expand its size range.
In addition, Tenaris will upgrade ultrasonic line pipe testing equipment at its Prudential welded pipe mill in Calgary, Alberta.
“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, president of Tenaris Canada. “The new investment will also strengthen our Rig Direct® business model with shorter lead times and increased flexibility, while improving our customer support.”