Ontario Shipyards is thrilled to announce that Algoma Steel Inc. has officially entered into a letter of intent to become the exclusive steel supplier for Team Vigilance, marking a significant step in Canada’s shipbuilding industry. This collaboration signifies the first time Royal Canadian Navy (RCN) ships will be primarily constructed using steel made in Canada. This strategic alliance solidifies Team Vigilance’s position as the only consortium capable of delivering a solution that is designed, built, and equipped entirely in Canada for the Canadian Continental Defence Corvette.
“I am proud to welcome Algoma Steel to Team Vigilance. Algoma’s participation represents a powerful example of Ontario’s industrial sector rallying to support the National Shipbuilding Strategy. Ontario Shipyards will harness the full strength of this sector, including industry leaders like Algoma Steel, to build ships for Canada efficiently and competitively. I am committed to using steel produced by Algoma beyond the Vigilance initiative. I look forward to continuing my close collaboration with Michael Garcia, a CEO I hold in the highest regard, as we pursue new shipbuilding opportunities together,” conveyed Shaun Padulo, President and CEO, Ontario Shipyards.
VIGILANCE, a state-of-the-art naval solution developed for Canada’s Continental Defence Corvette program, will deliver a versatile and highly capable asset to the RCN. In partnership with prominent industry leaders, including VARD Marine, Thales Canada, SH Defence, and Fincantieri, VIGILANCE will provide a military vessel that is not only globally deployable but also adaptable to meet the evolving demands of naval defence.
“The Ontario steel industry employs thousands of hard-working men and women whose jobs are at risk in the face of US tariffs. 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,” said Michael Garcia, CEO, Algoma Steel.
Algoma Steel, based in Sault Ste. Marie, Ontario, is Canada’s leading producer of steel plate and a major employer in the region, with over 2,700 people on staff. Recent advancements in the shipbuilding sector, such as the American Bureau of Shipping’s approval of CSA standard steel, along with the Government of Canada’s commitment to prioritizing Canadian-made steel for federal procurements, positions Algoma Steel as an ideal partner for future vessel construction under the National Shipbuilding Strategy.
“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 and resilient province. By positioning our province’s shipbuilding industry as a full regional partner under the federal government’s National Shipbuilding Strategy, we’re helping secure Canadian contracts to build, retrofit, and repair Navy ships right here in Ontario,” expressed Hon. Prabmeet Sarkaria, Minister of Transportation, Ontario.
The VIGILANCE project represents a significant step forward for Canada’s naval capabilities, equipping RCN sailors and the Royal Canadian Naval Reserve with cutting-edge tools. But beyond its military impact, the collaboration with Algoma Steel highlights the ongoing strength and expertise of Ontario’s industrial sector. Through this partnership, VIGILANCE will not only bolster Canada’s naval sovereignty but will also contribute to the continued growth of the Canadian shipbuilding industry, driving economic expansion across the nation.
