Historic Partnership Brings Canadian Steel to NavalShipbuilding
In a significant development for Canada's domesticshipbuilding and steel industries, Ontario Shipyards announced on April 23,2025, that Algoma Steel Inc. has signed a letter of intent to join the TeamVigilance preferred supplier program as the exclusive provider of steel platefor the Canadian Continental Defence Corvette program. This partnershiprepresents a milestone in Canadian naval procurement, as it will mark the firsttime Royal Canadian Navy vessels will be constructed using primarilyCanadian-made steel.
The announcement comes at a strategic moment for bothindustries. The American Bureau of Shipping recently announced it would acceptCanadian Standards Association standard steel in shipbuilding, removing asignificant regulatory hurdle. Additionally, the Canadian government hasinitiated policies prioritizing domestically produced steel in federalprocurement projects, creating favorable conditions for this partnership.
Team Vigilance Positions as All-Canadian Solution
Team Vigilance, a consortium led by Ontario Shipyards, ispositioning itself as the only bidder offering a "designed in Canada,built in Canada, and equipped in Canada" solution for the ContinentalDefence Corvette program. The consortium includes key partners VARD Marine,Thales Canada, SH Defence, and Fincantieri, bringing together Canadian andinternational expertise in naval design and systems integration.
The VIGILANCE corvette is described as a next-generationnaval solution designed to provide the Royal Canadian Navy with anoperationally flexible military asset capable of global deployment. Whilespecific technical details of the vessel design were not disclosed in theannouncement, the emphasis on operational flexibility suggests a multi-missionplatform that can adapt to various naval challenges.
This partnership strengthens Team Vigilance's position incompeting for the Continental Defence Corvette program, which is expected to bea significant component of Canada's National Shipbuilding Strategy. Byincorporating Canadian-made steel and emphasizing domestic industrialparticipation, Team Vigilance is aligning with the government's statedpriorities for naval procurement.
Economic Impact and Industrial Strategy
Algoma Steel, headquartered in Sault Ste. Marie, Ontario,is Canada's leading steel plate producer and employs over 2,700 people. Thecompany's inclusion in the Team Vigilance consortium represents a significantopportunity to secure long-term work for its facilities and workforce.
Who's Involved?
The partnership brings together several key players inCanada's industrial and defense sectors:
Ontario Shipyards, led by President and CEO Shaun Padulo,is positioning itself as a competitive option for naval shipbuilding projectsunder the National Shipbuilding Strategy. Padulo's statement emphasized thecompany's commitment to harnessing "the full strength of [Ontario's]industrial sector" to build ships "efficiently andcompetitively."
Algoma Steel, under CEO Michael Garcia, brings significantsteel production capacity and expertise to the partnership. As Canada's leadingsteel plate producer, Algoma has the technical capabilities required for navalshipbuilding but has faced challenges from international competition and tradebarriers.
Team Vigilance includes several other partners beyondOntario Shipyards and Algoma Steel. VARD Marine, a naval architecture andmarine engineering firm, likely contributes design expertise. Thales Canada, adefense technology company, presumably provides systems integration andelectronics capabilities. SH Defence and Fincantieri bring additionalshipbuilding and naval systems expertise to the consortium.
The Ontario provincial government is also supporting theinitiative, with Transportation Minister Prabmeet Sarkaria highlighting theprovince's $200 million investment in the Shipbuilding Grant Program. Thisprovincial support aims to position Ontario's shipbuilding industry as "afull regional partner under the federal government's National ShipbuildingStrategy."
Key Takeaways:
• Algoma Steel has signed a letter of intent to join TeamVigilance as the exclusive steel plate provider for the Canadian ContinentalDefence Corvette program
• This marks the first time Royal Canadian Navy ships willbe constructed using primarily Canadian-made steel
• Team Vigilance positions itself as the only consortiumoffering a fully Canadian solution: "designed in Canada, built in Canada,and equipped in Canada"
• Algoma Steel employs over 2,700 people in Sault Ste.Marie, Ontario, and is Canada's leading steel plate producer
• The partnership comes amid challenges from U.S. tariffson Canadian steel, with Algoma's CEO urging government commitment to domesticprocurement
• Ontario's provincial government is supporting theinitiative with a $200 million Shipbuilding Grant Program
• The partnership could strengthen Canada's industrialsovereignty and create substantial work for Ontario's manufacturing sector
