Hanwha Ocean and Algoma Steel sign MOU to support Canadian steel and jobs
To that end, Hanwha Ocean will provide USD $200 million (approx. CAD $275 million) to Algoma for the potential development of a structural steel beam mill in Sault Ste. Marie, Ontario.
SEATTLE (Scrap Monster): Hanwha Ocean, a global shipbuilding and submarine manufacturer, has signed a binding memorandum of understanding (MOU) with Algoma Steel Inc., a leading Canadian producer of hot and cold rolled steel sheet and plate products.
Under the MOU, the two companies agreed to establish a long-term strategic arrangement with Hanwha Ocean’s contribution of up to USD $250 million (approx. CAD $345 million) designed to support facility development and the procurement of Canadian-made steel for CPSP-related submarine construction and MRO infrastructure.
To that end, Hanwha Ocean will provide USD $200 million (approx. CAD $275 million) to Algoma for the potential development of a structural steel beam mill in Sault Ste. Marie, Ontario. In addition, Hanwha Ocean will purchase Algoma products with an aggregate value of up to USD $50 million (approx. CAD $70 million) for use in connection with its CPSP-related commitments, including submarine construction and the development of MRO infrastructure, including facilities planned in Nova Scotia and British Columbia, where the submarine fleet will be fully supported throughout its operational lifecycle.
The MOU is structured to align with Canada’s Industrial and Technological Benefits (ITB) framework for the CPSP, while supporting Canada’s domestic industrial base and the long-term operational needs of the Royal Canadian Navy. If the contemplated beam mill project goes ahead, the operation would support the creation of new skilled, long-term Canadian jobs.
The Hanwha-Algoma partnership demonstrates Canada’s Buy Canadian policy at work, ensuring that construction and sustainment activities are rooted in domestic supply chains and supporting industrial sovereignty, supply-chain resilience, and high-quality Canadian jobs in an increasingly uncertain global environment.
Hee Cheul Kim, President & CEO of Hanwha Ocean, said, “This partnership is about working side by side with Algoma as a leading Canadian steelmaker to build something lasting. By anchoring steel production, infrastructure, and long-term sustainment in Canada, we are committed to strengthening Canada’s industrial resilience and supporting a submarine capability that Canadians can rely on today and for generations.”
Rajat Marwah, CEO of Algoma Steel, said, “As we usher in a new era for Algoma with electric arc furnace steelmaking and modernized finishing capabilities, this strategic arrangement with Hanwha Ocean represents a foundational step forward in our diversification strategy. It reinforces our focus on becoming Canada’s leading sustainable steelmaker, aligned with the country’s nation-building priorities in defense and infrastructure. We also recognize and applaud the Government of Canada’s support for policies that strengthen domestic manufacturing, supply-chain resilience, and long-term industrial capability.”
Courtesy: www.hanwha.com