{"id":435900,"date":"2026-01-27T06:36:11","date_gmt":"2026-01-27T06:36:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/435900\/"},"modified":"2026-01-27T06:36:11","modified_gmt":"2026-01-27T06:36:11","slug":"korean-shipbuilder-agrees-to-345m-deal-with-algoma-steel","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/435900\/","title":{"rendered":"Korean shipbuilder agrees to $345M deal with Algoma Steel"},"content":{"rendered":"

Algoma Steel inks $345 million deal with Hanwha Ocean predicated on the Korean firm winning a Canadian submarine contract. <\/p>\n

A major shipbuilder from South Korea has signed a memorandum of understanding with Algoma Steel<\/a>, which would see the Sault Ste. Marie steelmaker receive up to $345 million to develop a structural steel beam mill.<\/p>\n

The agreement is contingent on South Korean businesses winning the contract to build a new fleet of submarines for the Canadian military.<\/p>\n

Officials from Korea ar<\/a>e headed to Canada this week<\/a> in support of their bid, which is valued at more than $12 billion. It is competing with businesses from Germany.<\/p>\n

\"\"Fedeli Hanwha Ontario Trade Minister Vic Fedeli, far right, was in South Korea to attend the signing of the MOU between Hanwha Ocean and Algoma Steel. (Vic Fedeli\/Social media) <\/p>\n

Monday, Algoma Steel and Ko<\/a>rea\u2019s Hanwha Ocean<\/a> announced they had entered into a binding MOU related to the \u201cfuture submarine program with Canadian steelmaking capability and Canadian workers, supporting long-term naval readiness and industrial sovereignty.\u201d<\/p>\n

\"\"Fedeli Hanwha Ontario Trade Minister Vic Fedeli was in South Korea for the signing of the MOU between Hanwha Ocean and Algoma Steel. (Vic Fedeli\/Social media) Structural steel beam mill<\/p>\n

If the deal moves ahead, Algoma will receive $275 million from Hanwha to develop a structural steel beam mill in Sault, as well as promises to purchase products from Algoma for the submarine production, bringing the value of the deal to $345 million.<\/p>\n

The steel Hanwha would purchase from Algoma would be \u201cfor use in connection with its Canadian Patrol Submarine Project-related commitments, including submarine construction and the development of maintenance, repair and overhaul infrastructure required to support the fleet throughout its operational lifecycle in Canada,\u201d said a Monday news release announcing the agreement. <\/p>\n

\"\"Algoma Steel The contract would be a major boost for Algoma Steel, which has been hit hard by 50 per cent tariffs on steel and aluminum exports to the United States. (Sean Kilpatrick\/Sean Kilpatrick | La Presse canadienne) <\/p>\n

\u201cThe strategic arrangement is intended to strengthen Canada\u2019s domestic industrial base while supporting 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.\u201d<\/p>\n

If the deal moves forward, Algoma would be required to make payments to Hanwha for 10 years equal to three per cent of the net sales of the beam mill facility.<\/p>\n

\u201cThis partnership is about working side-by-side with Algoma as a leading Canadian steelmaker to build something lasting,\u201d Hee Cheul Kim, president and CEO of Hanwha Ocean, said in the release.<\/p>\n

\"\"Hanwha sub The $345 million agreement is contingent on South Korean businesses winning the contract to build a new fleet of submarines for the Canadian military. (Hanwha Ocean photo) \u2018New era\u2019 for Algoma Steel<\/p>\n

\u201cBy anchoring steel production, infrastructure and long-term sustainment in Canada, we are committed to strengthening Canada\u2019s industrial resilience and supporting a submarine capability that Canadians can rely on today and for generations.\u201d<\/p>\n

\u201cAs 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,\u201d added Algoma CEO Rajat Marwah.<\/p>\n

\u201cIt reinforces our focus on becoming Canada\u2019s leading sustainable steelmaker, aligned with the country\u2019s nation-building priorities in defence and infrastructure.\u201d <\/p>\n

\u201cWe also recognize and applaud the Government of Canada\u2019s support for policies that strengthen domestic manufacturing, supply-chain resilience, and long-term industrial capability,\u201d Marwah added.<\/p>\n

Since its establishment in 1973, Hanwha Ocean has built more than 1,400 vessels, including the design, construction, and sustainment of submarines and surface combatants for the Republic of Korea Navy. <\/p>\n

Hanwha Ocean\u2019s shipyards cover an area of approximately five million square metres, employ around 31,000 people and build approximately 45 commercial and naval ships each year.<\/p>\n

\"\"Hanwha Ocean Hanwha Ocean\u2019s shipyards cover an area of approximately five million square metres in South Korea, employ around 31,000 people and build approximately 45 commercial and naval ships each year. (Hanwha Ocean photo) <\/p>\n

The contract would be a major boost for Algoma Steel, which has been harmed by the imposition of 50 per cent tariffs by the U.S. on steel and aluminum exports. It recently announced plans to reduce its workforce by 1,000<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Algoma Steel inks $345 million deal with Hanwha Ocean predicated on the Korean firm winning a Canadian submarine…\n","protected":false},"author":2,"featured_media":435901,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[16599,115788,43,44,18508,181079,41,39,42,40,9880],"class_list":["post-435900","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-algoma-steel","tag-hanwha-ocean","tag-headlines","tag-news","tag-royal-canadian-navy","tag-south-korean-shipbuilder","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-trumps-tariffs"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/435900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=435900"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/435900\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/435901"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=435900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=435900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=435900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}