Ontario Shipyards has proudly announced a major milestone in Canadian shipbuilding: Algoma Steel Inc. has signed a Letter of Intent to join the Team Vigilance Preferred Supplier Program as the exclusive provider of steel plate. This strategic collaboration signals a historic first — Royal Canadian Navy (RCN) ships will now be constructed primarily using made-in-Canada steel.
Source: Algoma Steel
Team Vigilance, led by Ontario Shipyards alongside partners VARD Marine, Thales Canada, SH Defence, and Fincantieri, offers the only fully Canadian-designed, built, and equipped solution for the Canadian Continental Defence Corvette program. At the heart of this initiative is VIGILANCE, a next-generation naval platform designed to enhance Canada’s continental defence capabilities with operational flexibility, global deployability, and future-readiness.
The inclusion of Algoma Steel — headquartered in Sault Ste. Marie, Ontario, and employing over 2,700 Canadians — solidifies the commitment to a sovereign naval capability rooted in Canadian industry. With the American Bureau of Shipping recently recognizing CSA standard steel for shipbuilding, and the Government of Canada’s efforts to prioritize domestic steel in federal procurement, Algoma is ideally positioned to supply future shipbuilding programs under the National Shipbuilding Strategy.
This collaboration extends beyond equipment. It represents a strategic investment in Canada’s industrial base, leveraging Ontario’s manufacturing heartland to strengthen economic resilience, drive local job creation, and bolster national defence capabilities.
Shaun Padulo, President and CEO of Ontario Shipyards, emphasized the broader significance:
“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.”
Michael Garcia, CEO of Algoma Steel, echoed this sentiment and underlined the importance of Canadian-made solutions:
“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.”
Recognizing the broader economic opportunity, the Government of Ontario is also stepping up. Hon. Prabmeet Sarkaria, Minister of Transportation, highlighted provincial efforts to reinforce Ontario’s shipbuilding sector:
“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.”
As Canada faces new strategic challenges across the globe, initiatives like Team Vigilance not only equip the Royal Canadian Navy and Naval Reserve with the advanced tools they need — they also forge a robust, sovereign Canadian defence industrial base.
With Ontario Shipyards and Algoma Steel leading the way, the future of Canadian shipbuilding looks both strong and proudly Canadian.
Canada Defence Journal 