SAULT STE. MARIE, ON – The federal government has announced that it will invest $11 billion into building six new icebreakers and that is good news for Algoma Steel. All six icebreakers will be built in Canada at the Davie Shipyard in Lévis, Québec. The project will create almost 5,000 jobs in the construction phase alone and contribute nearly $650 million annually to Canada’s GDP.
Under the government’s Buy Canadian Policy, these vessels will be built with Canadian steel and other domestic materials, while maximizing opportunities for Canadian manufacturers, suppliers, and small and medium-sized businesses, a press release stated.
Since Algoma Steel is the primary domestic supplier of the discrete heavy plate steel needed for these specific Arctic builds, they are uniquely positioned as the core steel provider for the program. It is the only producer of this steel in Canada.
Sault-Algoma MP Terry Sheehan said he’s excited that Algoma Steel will be part of the largest shipbuilding announcement made in Quebec’s history. “I have already spoken to Algoma’s CEO Rajat (Marwah), and I will be visiting Chantier Davie later this fall,” Sheehan said.
Sheehan said this contract provides stability for Algoma’s order books and demonstrates that the Sault Ste. Marie steelmaker has already built a great relationship with Chantier Davie.
The value of the contract to Algoma Steel has not been disclosed. Mayor Matthew Shoemaker said he met with Chantier Davie officials in Sault Ste. Marie some time ago. “Today’s announcement is good news and hopefully there is more to come,” he said.
In February it was announced that Algoma Steel shipped its first plates of Ontario steel to Davie in Quebec, where they will be used to build the Canadian Coast Guard’s new icebreaking vessel, the Polar Max.
Algoma Steel is one of North America’s leading producers of high-quality armour plate, and a total of 600 net tons of metal plates will be sent by Algoma Steel to Davie for the Polar Max project.
“Not only is our government’s support of Algoma Steel safeguarding the northern economy, but it is also putting a spotlight on Ontario’s steel manufacturing capabilities and contributing to Canada’s defence infrastructure,” said George Pirie, Minister of Northern Economic Development and Growth at that announcement. “We’re enabling Algoma Steel to successfully navigate changing market conditions and U.S tariff impacts, while simultaneously playing an important role in Canada’s security. We’ll continue making every effort to use and promote Ontario steel wherever possible.”
Construction will begin in 2027, this first ship will be ready five years later, and the full fleet will be in service by 2038.
Sault Star
