Hanwha Ocean has signed a binding memorandum of understanding with Algoma Steel Inc. to establish a long-term strategic arrangement supporting Canadian facility development and the procurement of Canadian-made steel tied to the Canadian Patrol Submarine Project (CPSP).
Under the MOU, Hanwha Ocean’s contribution totals up to $250 million (approx. CAD $345 million). The package includes up to $200 million (approx. CAD $275 million) for Algoma Steel Inc. to support the potential development of a structural steel beam mill in Sault Ste. Marie, Ontario. In addition, Hanwha Ocean agreed to purchase Algoma products with an aggregate value of up to $50 million (approx. CAD $70 million) for CPSP-related commitments, including submarine construction and MRO infrastructure.
The planned MRO infrastructure includes facilities intended for Nova Scotia and British Columbia, with the submarine fleet to be fully supported throughout its operational lifecycle. The MOU is structured to align with Canada’s Industrial and Technological Benefits framework for the CPSP and to support Canada’s domestic industrial base and the long-term operational needs of the Royal Canadian Navy. If the contemplated beam mill project proceeds, the operation would support the creation of new skilled, long-term Canadian jobs.
Company leadership framed the arrangement as a Canada-based supply chain effort, linking domestic steel production with long-term construction and sustainment requirements under the CPSP.
