China Steel has received a contract valued at more than $1 million to help Canada’s Department of National Defence manufacture new armoured combat vehicles.
The 360 vehicles will be created at the General Dynamics Land Systems-Canada manufacturing facility in London, Ont. on a $2-billion contract, but Sault Ste. Marie’s China Steel has a part to play in that production, said Sault MP Terry Sheehan.

The sub-contract to provide support for this procurement will help sustain 10 jobs in Sault Ste. Marie during the pandemic, while supporting the growth of an innovative local business, Sheehan said.
This is a “big step forward” as the government continues to deliver on Strong, Secure, Engaged, Canada’s first fully costed and funded defence policy, Sheehan said. As per the Industrial and Technological Benefits Policy, General Dynamics will re-invest an amount equal to the value of the contract to create and sustain well-paying jobs across the country.

To maximize the economic benefits of this project for Canadians, the supplier will reinvest an amount equal to the value of this contract – dollar-for-dollar – back into the Canadian economy to create jobs and opportunities for innovation, Sheehan said. In addition to the almost 1,650 jobs at the General Dynamics Land Systems (GDLS) plant in London, there are close to 8,500 jobs across Canada that help to supply necessary parts and equipment for the construction of light armoured vehicles.

“This is one of the things I had been advocating for and I have supported with previous private member’s bill. We need to support local procurement and create more middle-class paying jobs,” Sheehan told The Sault Star.
The deal helps China Steel.

“This contract has kept our employees working and earning a living during this pandemic. A large thank you to the Canadian Government and General Dynamics Land Systems-Canada for their support,” said Robert Guido, manager of China Steel in a news release.

Sheehan said “this local company has had military contracts in the past, but now they will be manufacturing parts for armoured vehicles and their protection systems.”
The new vehicles, the first of which is to roll off production lines by year end, will replace the M113 track light and LAV II Bison.

The new armoured vehicles will be used by the Canadian military for a variety of purposes. Armoured Combat Support Vehicles will be available in eight variants, providing services such as: ambulances, vehicle recovery, engineering, mobile repair, electronic warfare, troop carrying, and command posts.
Armoured combat support vehicles serve key roles, such as command posts, ambulances, and mobile repair. This new fleet will offer the protection and mobility that Canadian Armed Forces members need to conduct their work in operational environments.

They will be used both in Canada in response to national disasters and to fulfill Canada’s obligations with NATO.
“In Sault Ste. Marie, we are the centre of steel manufacturing excellence and this helps show the continued tradition of steel manufacturing and fabrication of steel,” Sheehan said. “I’m so glad to see this. It’s double duty pride for me to make this announcement today.”

China Steel describes itself as a full-service fabrication and machine shop.
Company representatives did not respond to The Sault Star’s request for an interview.

Last year, the federal government announced that Algoma Steel was awarded a major contract through the National Shipbuilding Strategy to help build Joint Support Ships for the Royal Canadian Navy.