Hanwha has further expanded its industrial partnerships in Canada, announcing a series of strategic MOUs spanning steel, space, artificial intelligence, and advanced technologies in support of the Canadian Patrol Submarine Project (CPSP).
Signed on the sidelines of a visit to Toronto by a South Korean government and business delegation for industrial cooperation and investment discussions with Canadian companies, the MOUs highlight Hanwha’s long-term commitment to working with Canadian industry to support job creation, industrial development, as well as strengthening Canada’s sovereign defense, security, and industrial capabilities, in line with nation-building priorities.
The Republic of Korea views the CPSP as an opportunity to elevate the Canada-Korea relationship into a durable, whole-of-government strategic partnership spanning defense, industry, technology, and security cooperation. This approach is fully aligned with the Canada-Korea Free Trade Agreement, the Comprehensive Strategic Partnership, the Security and Defence Cooperation Partnership, and Canada’s Indo-Pacific Strategy.
Hanwha Ocean and Algoma Steel have entered into a binding MOU to establish a long-term strategic arrangement to support the revitalization of Canada’s steel sector and create jobs for Canadians. The partnership is designed to anchor key elements of submarine construction and sustainment in Canada by leveraging Algoma’s domestic steelmaking capabilities and Canadian workforce, reinforcing Canada’s naval readiness and industrial sovereignty.
Under the MOU, Hanwha Ocean is to provide Algoma with an aggregate potential value of up to USD $250 million (approximately CAD $345 million), comprising support for the development of a new structural steel beam mill in Canada, as well as anticipated purchases of steel products for use in CPSP-related submarine construction and associated maintenance, repair, and overhaul (MRO) infrastructure in Nova Scotia and British Columbia where the submarine fleet will be fully supported throughout its lifecycle.
The beam mill investment, in particular, would give Algoma a new business opportunity beyond submarines, supplying steel for infrastructure, housing, and road projects, and opening up new opportunities for Canadian workers in a market that has historically been dominated by imports.
Hee Cheul Kim, President & CEO, 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, 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.”
