Pipe dreams at Sault seamless tube mill: provincial cash for Tenaris plant upgrades helped reopen operations.

• Position: NEWS

Tenaris' seamless pipe operation in Sault Ste. Marie received a $2 million gift from the Ontario government Aug. 25.

The mill collected funding for various equipment and facility upgrades at Algoma Tubes to lower operating costs and improve energy efficiency.

A release said the money "allowed Tenaris to reopen their plant" following a temporary layoff of 130 employees and a suspension of operations in 2016.

Tenaris resumed operations last November after production was halted in March 2016 due to foreign dumped steel and a lengthy industry downturn.

Algoma Tubes makes seamless pipes for oil and gas, automotive, and mechanical industries. Formerly operated by Algoma Steel, the plant was bought by Tenaris S.A. of Luxembourg in a $12.5-million deal in 2003.

"An advanced manufacturing facility that is safe, energy-efficient and environmentally compliant is in the best interest of Tenaris employees, customers and our community," said David McHattie, the company's vice-president of public affairs, in a statement.

"The investment provided by the Ontario government is allowing Tenaris to modernize equipment to maintain regulatory compliance and enhance technological capabilities to better serve the Canadian energy industry."

"By investing in manufacturing operations...