MP Terry Sheehan is committed to getting the beam mill built, even if that started as a Hanwha Ocean thing
Talks were quietly underway today between Algoma Steel and ThyssenKrupp Marine Systems, which just won a contract to build Canada’s submarines.
The awarding of the multimillion-dollar contract to a German firm was hugely disappointing to Algoma, which stood to profit handsomely if the Canadian government had instead chosen a rival bid from South Korea-based Hanwha Ocean.
ThyssenKrupp Marine System (TKMS) emerged as the winning bidder yesterday, but it immediately started talking with Algoma steel last night to see how the Sault steelmaker might help with the massive contract.
Sault MP Terry Sheehan arranged for the two companies to meet again today.
“TKMS has reengaged with Algoma Steel,” Sheehan told SooToday.
“They were talking today, about how Algoma Steel might be involved with the various projects.”
Algoma Steel chose its words carefully and deferentially when asked to comment on the ThyssenKrupp victory.
“Algoma Steel congratulates ThyssenKrupp Marine Systems on being selected as the preferred supplier for the Canadian Patrol Submarine Project, and commends the Government of Canada on this important step for Canada’s security and industrial capability,” the company said in a written statement.
“As one of Canada’s largest steel producers, Algoma is proud to see Canada investing in its own industrial and defence capability, and looks forward to the opportunities that this investment creates for the Canadian steel industry.
“We also thank Hanwha for working with us and we hope there are opportunities to collaborate in the future,” Algoma Steel said.
Sheehan told SooToday he’s also committed to building the Algoma beam mill.
“So, TKMS has won the right to negotiate. Canada has chosen TKMS to negotiate for the 12 submarines,” Sheehan said.
“And you know there’ll be some negotiations over time, and TKMS has re-engaged with Algoma Steel.
“It had (looked) like the Koreans were going to be using their own steel, because there’s nobody in Canada made the steel for the submarine itself.
“There were some components inside the submarine, and (Algoma Steel CEO) Rajat Marwah did confirm to me as a smaller amount of steel, very similar to the German project, too.”
Sheehan said the federal Liberals are serious about getting the beam mill done “because we are building big in Canada, and we have a ‘buy Canadian’ policy that is still underway. So, I’m committed to getting that beam division done.
“I’m committed to getting that beam division up, because the beam division represents a significant amount of steel, and quite a few jobs.
“We have a ‘buy Canadian’ policy on all our building projects, not only the submarine docks, but a whole bunch of other things. So, there is still opportunity,” Sheehan said.