If you live in Saint John, you know Ocean Steel. The company employs 200 people locally and builds the backbone of major infrastructure projects. For decades, they relied heavily on the United States. In the early 2000s, 100 percent of their products went south of the border. Today, that number sits at just five percent. According to a recent report from CBC News, ongoing US tariffs forced the company to make a massive pivot to survive.

A Tectonic Shift in Strategy

Ocean Steel President Hans Klohn calls the transition a tectonic shift. The company had to move its product mix away from American buyers. By 2021, US customers still made up 70 percent of their business. The constant threat of tariffs changed everything.

Ocean Capital President John Irving notes the US remains a massive customer right next door. “We want them as a customer, but there are other people too, and we have to go find them,” Irving told CBC News.

Federal Dollars Fuel Modernization

To help Ocean Steel capture more of the Canadian market, the federal government stepped in with a $750,000 contribution. The company is using this money to upgrade its Saint John facility.

Klohn says they are implementing advanced software and robotic welding capabilities. These upgrades improve consistency and reduce material waste. They also allow skilled employees to focus on complex, high value work.

Saint John Rothesay MP Wayne Long points out that Saint John took the hardest hit from recent tariffs. He views this as a wakeup call for Canadian industries to look inward and invest at home.

Building with Canadian Steel

Ocean Steel is not just selling to Canadians. They are buying from them too. The company now sources more flat rolled steel from domestic suppliers like Algoma Steel. Klohn emphasizes their goal is to shift their product mix to items that use Canadian steel.

The defense sector offers another major growth opportunity. With planned expansions at Base Gagetown and a potential submarine base in Halifax, Ocean Steel is ready to bid on military contracts. Irving remembers the 1980s when Saint John Shipbuilding built frigates for the navy. He says if the government is ordering, Ocean Steel can make it.

Frequently Asked Questions

Why did Ocean Steel stop selling to the US?

Ongoing US tariffs made it too difficult and expensive to rely on American customers. The company shifted its focus to the Canadian market to ensure stability.

How many people work at Ocean Steel in Saint John?

The company employs approximately 200 people at its Saint John facility.

What is Ocean Steel doing with the federal funding?

The company received $750,000 to invest in advanced software and robotic welding equipment. This modernization helps reduce waste and improves production efficiency.

What new markets is Ocean Steel targeting?

Ocean Steel is focusing on domestic infrastructure projects and the Canadian defense sector, including potential work at Base Gagetown and a Halifax submarine base.