A global company that makes tubes for the oil sector and other industries is planning a major investment in Sault Ste. Marie.
Tenaris Canada is planning to centralize its Canadian operations in the Sault, investing $70 million to $80 million to add 30,000 square feet to its operations.
The added space will allow the company "to install a modern, productive electric resistance welded pipe manufacturing line in Sault Ste. Marie," says a staff report on the project headed to Sault city council Nov. 9.
The facility would be the only one in the world capable of manufacturing the seamless pipes in all the grades demanded by the Canadian market with American Petroleum Institute and premium connections, the report said.
Algoma Steel would also benefit
Construction would create the equivalent of 50 full-time jobs, and once operational, 75 new jobs would be created in the first year, and additional 50 more "in Sault Ste. Marie, including salaried employees who earn on average $100,000/year and unionized employees who earn 50 per cent more than the average family income for the region," the report said.
Algoma Steel would also benefit from the project. Tenaris expects to order as much as $200 million in hot rolled coil from Algoma once the project is up and running.
In addition to seeking funding from the federal and provincial governments, the company is looking for $1 million for the project from the city.
Tenaris Canada began operating in April 1999, and its Sault operation is one of a kind in Canada and is the only seamless pipe manufacturing facility in the country.
If everything goes well, construction could begin this fall, with the facility opening in October 2021.