Tenaris, Canada's leading domestic manufacturer of Oil Country Tubular Goods (OCTG), has announced a landmark $306 million CAD investment at its Sault Ste. Marie Industrial Centre, backed by the federal and Ontario governments. The announcement was made on Tuesday, May 22, 2026, alongside Canadian Minister of Industry Mélanie Joly, Ontario Premier Doug Ford, Ontario Minister of Economic Development Vic Fedeli, Sault Ste. Marie Member of Parliament Terry Sheehan, and Sault Ste. Marie Mayor Matthew Shoemaker.
Investment Details
The joint investment includes financial support from the federal government's Strategic Response Fund and the provincial government's Invest Ontario Fund. This marks another milestone in Tenaris's long-term commitment to Canadian manufacturing and the country's energy sector. The company is Canada's only seamless pipe manufacturer and the largest comprehensive supplier of OCTG pipe.
Production Expansion
The investment will expand production capacity, extend product range, and maximize productivity through the installation of new, state-of-the-art equipment. Improvements in material flows will impact each stage of the seamless and electric resistance welded (ERW) manufacturing processes, including hot rolling and stretch reduction, heat treatment, testing capabilities, and finishing. Additionally, a new threading line for semi-premium and API connections will be added.
Economic Impact
These upgrades will strengthen steel pipe production in Ontario to meet growing demand for a reliable domestic supply of high-performance OCTG, covering the steel grade range required for Canada's oil and gas industry, especially shale, thermal, and offshore drilling applications. Expanded capacity for critical OCTG and improved line pipe grades are pertinent to Canada's energy superpower ambitions. The investment is expected to generate up to 200 direct and indirect skilled jobs in Ontario at Tenaris's Sault Ste. Marie Industrial Centre, as well as create favourable business conditions for Ontario-based subcontractors.
"In Canada, we know energy connects us. Tenaris steel pipes, manufactured in Ontario and delivered through our Rig Direct® service network to oil and gas operators across the country, enable Canadian energy sovereignty. With this more than $300 million CAD investment, on top of more than $350 million CAD invested since 2020, we illustrate Tenaris's steadfast commitment to Canadian manufacturing. Today's milestone builds on the momentum to expand Canada's domestic supply chain for OCTG and line pipe," said Martín Castro, President of Tenaris in Canada.
