Algoma Steel aims to supply steel to rebuild Canada’s navy

Ontario Shipyards says Algoma Steel in the Sault is joining a group that wants to lead the effort to build Canada's next generation of warships.

Ontario Shipyards announced this week that Algoma Steel is joining a group that wants to lead the effort to build Canada’s next generation of warships.

The announcement comes as Algoma faces major challenges as a result of 25 per cent tariffs imposed by the United States.

Ontario Shipyards is the largest Canadian ship repair and construction company on the Great Lakes and it’s part of Team Vigilance, a group that aims to design and build warships for the Royal Canadian Navy.

The Sault Ste. Marie, Ont., steelmaker has signed a letter of intent to join the Team Vigilance program as the exclusive provider of steel plate. The news was announced following the closing of markets on Wednesday.

The collaboration with Algoma Steel marks the first time that the Royal Canadian Navy ships will be built using primarily made-in-Canada steel.

“Vigilance is a next-generation naval solution designed to meet the requirements of Canada’s Continental Defence Corvette program,” said a news release announcing the decision.

Continental defence

“In collaboration with key partners Vard Marine, Thales Canada, SH Defence, and Fincantieri, Vigilance will provide the (Royal Canadian Navy) with an operationally flexible military asset that is capable, globally deployable, and ready to meet future naval challenges.”

Launched in 2023, Project Vigilance involves a group of five companies that have submitted an unsolicited proposal to the Royal Canadian Navy for a replacement of the Kingston class. It’s now molded into Canada’s Continental Defence Corvette Program.

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“It’s a huge step forward … in terms of making sure that we’re using Canadian-made products, especially with federal procurements, when thinking about our national defence and taking that into our own hands in building a supply chain that is robust and to facilitate that work here,” said Ted Kirkpatrick, Ontario Shipyards director of business development and government relations.

Kirkpatrick said Ontario was once the “epicentre” of shipbuilding in Canada, with more than 250 vessels built between 1900 and the end of the Second World War.

Ontario Shipyards isn’t part of the national shipbuilding strategy yet but they feel they have a lot to offer.

Algoma Steel CEO Michael Garcia said moving forward with a major shipbuilding program using Canadian steel is vital for the future.

“In light of the present headwinds, we urge the Canadian government to commit to a major shipbuilding program in Ontario that prioritizes made-in-Canada solutions and made-in-Canada suppliers,” Garcia said in a statement.

The announcement has the support of Prabmeet Sarkaria, Ontario’s Minister of Transportation.

“Our government is proud to support a $200-million investment in the Shipbuilding Grant Program to strengthen Ontario’s economy, create good local jobs and support a more self-reliant province,” Sarkaria said.