Seaspan orders Canadian steel from Algoma for up to six Coast Guard icebreakers
Seaspan says the roughly $182 million order supports Canada's defence industry, though Canadian steel typically costs more than imported material.
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Seaspan Shipyards has awarded a roughly $182 million contract to Algoma Steel and Stigterstaal Canada for up to 24,000 metric tonnes of Canadian-made structural steel. The steel is for up to six smaller multi-purpose icebreakers the North Vancouver shipyard will build for the Canadian Coast Guard under Canada's National Shipbuilding Strategy.
Canadian-produced steel typically costs 10 to 15 per cent more than comparable U.S. mill material, and a Seaspan spokesperson said it "may be considerably more expensive" than steel from Asia, depending on product type, grade and market conditions. Seaspan said domestic suppliers are "always given first consideration, and Canadian-produced materials are used whenever possible," and it describes the deal as a "shared commitment to strengthening Canada's defence industrial base." Seaspan has bought steel from Algoma before, as well as from mills in Finland and South Korea, and says sourcing decisions depend on technical requirements and "supplier capabilities."
The icebreakers will operate in Canada's lower Arctic and offshore waters. Each is about 100 metres long, displaces nearly 9,000 tonnes, carries 50 crew and has Polar Class 4 icebreaking capability. Construction starts after Seaspan finishes its current ships, the second Navy joint support ship and a large polar icebreaker, and no start date has been set.
