It is tough news to hear anytime, but especially so with the Christmas season approaching.
There are more layoffs coming at the Tenaris operation in Sault Ste. Marie, Algoma Tubes.
The company produces seamless steel pipes.
One of the city’s larger employers is letting go of 90 more unionized employees as of December 15th for a three week shutdown. Representing an approximate 25% production reduction.
This is being called a temporary layoff due to market challenges:
- A surge in energy tubular imports diverted to Canada by third countries constrained from exporting to the United States
- Decline in Algoma Tube's export sales to the U.S.
- The price of oil and gas
The company says the plant will suspend operations for three weeks from December 15th to January 7th.
“These are difficult decisions that have resulted from high volumes of energy tubular imports, trade actions against Canada that remain unresolved, and Canadian oil and gas producers activity adjustments due to the widening price differential for their energy. Our production levels remain above those in 2016 when we resumed operations. We are trying, where possible, to reduce the impact to our employees. We remain committed to domestic manufacturing and serving Canada’s energy industry.” said Guillermo Moreno, President of Tenaris Canada.
Back in July, Tenaris laid off 40 employees.
