Ontario Celebrates First Shipment of Made-in-Ontario Steel to Build Canada’s Newest Coast Guard Icebreaker

Press Release

February 05, 2026

Ontario’s steel industry is unlocking new trade, boosting defence and driving economic growth

SAULT STE. MARIE — Ontario is celebrating a major milestone for made-in-Ontario manufacturing as Algoma Steel ships 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. George Pirie, Minister of Northern Economic Development and Growth, joined representatives from Algoma Steel and Davie to celebrate the shipment, which highlights how Ontario’s steel industry is key to the government’s plan to protect Ontario from U.S. tariffs by strengthening domestic supply chains, unlocking trade within Canada and ensuring Canada’s future is built with Ontario steel.

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. As defence spending accelerates around the world, Ontario will continue to leverage its strengths in advanced manufacturing, critical minerals and steel production to position the province as a trusted partner, ready to meet growing international demand.

“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. “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.”

Ontario is the steelmaking hub of Canada, with more than 70 per cent of the country’s steel capacity located in the province. The sector also supports more than 16,000 direct jobs and 55,000 indirect jobs and is a cornerstone of Ontario’s manufacturing supply chain. As part of its plan to protect Ontario, the government is responding to unjustified U.S. tariffs with targeted strategies and investments to enhance steel manufacturing capacity, boost investment attraction and strengthen supply chains for long-term growth.

“Algoma Steel is proud to supply Canadian-made steel for programs that matter to Canadians,” said Rajat Marwah, Chief Executive Officer, Algoma Steel Inc. “This partnership supports skilled jobs in Ontario and strengthens the industrial foundation Ontario and Canada needs to build and maintain critical assets for the future.”

“Davie is proud to deliver the world’s most advanced icebreaker by ensuring we are maximizing the involvement of the strong Canadian manufacturing base behind it,” said James Davies, Chief Executive Officer, Davie. “Working with Algoma puts Canadian steel at the heart of Davie’s shipbuilding capability, strengthening the shipbuilding ecosystem and supporting skilled jobs in Quebec and Ontario.”

Ontario is supporting the steel sector through targeted programs and investments that help companies stay competitive, grow and create new opportunities in global markets. This includes helping manufacturers build resilience and strengthen supply chains, while prioritizing Ontario steel in public procurement through the Buy Ontario Act, which ensures Ontario tax dollars are going to support Ontario workers and using Ontario products like steel, lumber, cars, trucks and more.

Quick Facts

• Established in 1901 in Sault Ste. Marie, Algoma Steel has a strong presence in the North American steel sector and serves as the largest employer in Sault Ste. Marie as well as the second largest private sector employer in Northern Ontario.
• The Polar Max, awarded to Davie in March 2025 under the National Shipbuilding Strategy (NSS), will be the most powerful and advanced conventional heavy icebreaker in the world when delivered in 2030.
• Based in Quebec since 1825, Davie is a world-class designer and builder of specialist, mission-critical ships such as icebreakers, ferries and warships for government and commercial customers.
• Ontario is home to the country’s three largest integrated steel producers: ArcelorMittal Dofasco (Hamilton), Algoma Steel (Sault Ste. Marie) and Stelco (Hamilton, Nanticoke), and several mini-mill producers such as Gerdau (Whitby, Cambridge) and Ivaco Rolling Mills (near Ottawa).
• Ontario is Canada’s largest market for interprovincial trade and its purchasing power per capita is among the highest in the world, with two-way trade in goods and services between Ontario and other provinces and territories worth nearly $324 billion in 2024.

Quotes

“As global defence spending reaches new highs, Ontario manufacturers are well equipped to meet the growing demand and support Canada’s national security needs. This milestone shipment from Algoma Steel underscores the important role Ontario’s steel sector and steelworkers play in unlocking new trade and market opportunities for the Canadian economy and will further position the province at the forefront of next-generation naval solutions.”
– Vic Fedeli
Minister of Economic Development, Job Creation and Trade

“This milestone is a powerful reminder that Ontario steelworkers are helping deliver nation-building projects that protect Canada’s future. From Northern Ontario to Quebec, Ontario-made steel is helping build the Canadian Coast Guard’s next generation of icebreakers – strengthening Canada’s sovereignty while supporting good-paying jobs here at home. Our government is proud to stand shoulder to shoulder with Ontario’s steel sector by protecting workers, investing in modern skills and infrastructure and ensuring our province remains self-reliant.”
– David Piccini
Minister of Labour, Immigration, Training and Skills Development

Additional Resources

• 2025 Ontario Budget: A Plan to Protect Ontario
• Ontario Unlocking Free Trade Within Canada
• Ontario Protecting Workers by Introducing First-in-Canada Labour Mobility Changes

Related Topics

Business and economy

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Government

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Rural, agriculture and north

Information about Northern Ontario, agriculture and local food. Learn about funding programs that support rural, northern and Indigenous communities. Learn more

Media Contacts

Sam McCormick
Minister’s Office
Sam.McCormick@ontario.ca

Media Relations
Communications Branch
mediadesk.MNEDG@ontario.ca

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