Ottawa appears to have sunk Algoma Steel’s plans to provide steel to submarines made by Korean-based Hanwha Ocean.
Mayor Matthew Shoemaker said this is a disappointing outcome for Sault Ste. Marie, referring to the federal government’s reported decision to buy submarines from a German manufacturer instead of a Korean shipbuilder that planned to use Algoma Steel.
Shoemaker was referring to the Carney government’s decision to select Thyssenkrupp Marine Systems of Germany as the preferred supplier to deliver new subs to the Royal Canadian Navy. The decision deep-sixes Algoma Steel’s partnership with a competing bidder, Hanwha Ocean of South Korea.
“Hanwha Ocean’s proposal included a significant partnership with Algoma Steel that had the potential to create new demand for Canadian steel, support investment in our local mill and make the Sault a stronger link in the defence industry supply chain,” Shoemaker said in a statement to SooToday.
He met with the company when representatives travelled to the Sault in April.
“While the federal government will set out the justifications for their expected decision, the need to support Canada’s steel industry has not changed.
“With U.S. steel tariffs continuing to impact Algoma and others, the time is now for the federal government to ensure other opportunities exist to increase the use of Canadian-made steel in major infrastructure, defence and industrial projects,” the mayor said.
“Sault Ste. Marie is ready to be part of that future. The continued development of the Port of Sault Ste. Marie presents a major opportunity to strengthen Canada’s industrial supply chains, diversify our local economy and create good-paying jobs.
“We look forward to working with HOPA Ports and our provincial and federal partners to make it happen.”