A multi-billion-dollar Canadian contract for a Quebec shipbuilder is good news for Sault Ste Marie: Algoma Steel products will be used in the construction. Earlier this week, the federal government announced an $11-billion contract for six new icebreakers for the Canadian Coast Guard. The contract was awarded to shipbuilder Chantier Davie Canada, with specialized steel coming from Algoma. “More than 1,500 suppliers from across Canada will support the work here at Davie,” Prime Minister Mark Carney said at a news conference Monday. Those supplies include Algoma Steel, Carney said, “preparing and supplying the high-grade marine steel that forms the backbone of these ships.” Sault MP Terry Sheehan said Algoma makes the products the icebreakers will require. “These ships, these Polar Icebreakers are the best in the world, and they will be using Algoma Steel cause Algoma Steel actually makes that kind of steel,” Sheehan said. No one from Algoma Steel returned CTV’s request for an interview. But on X, the company welcomed the announcement. “As Canada’s only producer of discrete steel plate, including plate for marine and shipbuilding applications, we are proud of the role Canadian-made steel will play in strengthening our domestic shipbuilding industry and supply chains,” the post said. Earlier this spring, Algoma Steel laid off 1,000 workers partly because U.S. tariffs limited steel access to the American market. Only Canadian suppliers Sheehan said using only Canadian suppliers and manufacturers on the ship project shows a commitment by the federal government. “We’re looking at new opportunities with our Buy Canadian Policy, with our national defence strategy and this fits perfectly in there to help support those jobs. Because, quite frankly, Trump has set out to destroy the Steel industry in Canada,” he said. “And we’re not going to let that happen.” Sault Mayor Matthew Shoemaker called the shipbuilding contract good news for the community. “I think that’s exactly what people in the Sault want to hear more of -- and there is a need for it,” Shoemaker said. “That’s an easy amount of steel for our steel plant to produce and so there needs to be tens, and dozens and hundreds of more orders in that vein.” The icebreakers will be in service by 2038. This isn’t the first time Algoma Steel and Chantier Davie have partnered. In February, the steelmaker provided steel plates to the Quebec shipbuilder for coast guard icebreakers.
