Tenaris is resuming manufacturing operations at its Calgary Prudential facility in July 2017, the company announced Thursday.
The move means about 100 union employees and 35 staff will be brought back to work.
“We are optimistic but still have to be cautious and adding more capacity as needed,” said Guillermo Moreno, vice-president and managing director for Tenaris in Canada.
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Low oil and gas prices and “the impact of unfairly traded imports” had caused what the company called a two-year interruption.
“Growth opportunities through our Rig Direct commercial strategy, greater stability in oil and gas prices, trade remedies against certain unfair trade, and a renewed commitment from our employees has given us the confidence to resume operations,” Moreno said in a statement.
Moreno told Global News he’s seeing a recovery in activity, but is still at 30 per cent below levels seen in 2014.
“Our clients, the oil and gas companies, are seeing the price of oil that is more stable, so they are ready to go for more investments and more drilling and therefore we can sell more of the pipe that we produce in our Calgary plant,” he said.
Tenaris will also be expanding Canadian operations with a $20-million multi-year investment in a Grande Prairie service centre, set to open later in 2017.
The company said its manufacturing facility produces electric resistance welded (ERW) line pipe, casing and tubing for the Canadian oil and gas industry.
Tenaris also resumed operations at its seamless pipe facility, AlgomaTubes, in Sault Ste. Marie, Ont., in November 2016.
With files from Tony Tighe
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