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Hanwha Ocean to Contribute up to US$250 Million to Algoma Steel For New Facility, Canadian Steel
01/29/2026 - Shipbuilding and submarine manufacturer Hanwha Ocean announced it has signed a memorandum of understanding (MOU) with Algoma Steel Inc. to contribute up to US$250 million between the potential development of a structural steel beam mill and the purchase of steel for its products.
Hanwha Ocean said it will contribute US$200 million to Algoma’s potential structural steel beam mill in Sault Ste. Marie, Ont., Canada. It will also purchase up to US$50 million of Algoma’s products to use on its Canadian Patrol Submarine Project (CPSP)-related commitments. This includes submarine construction and development of maintenance, repair and overhaul (MRO) infrastructure.
“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,” said Rajat Marwah, chief executive officer of Algoma Steel.
The companies said the MOU aligns with Canada’s Industrial and Technological Benefits framework for the CPSP while supporting its domestic industrial base and operational needs of the Royal Canadian Navy.
“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,” said Hee Cheul Kim, president and chief executive officer of Hanwha Ocean.
“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,” said Rajat Marwah, chief executive officer of Algoma Steel.
The companies said the MOU aligns with Canada’s Industrial and Technological Benefits framework for the CPSP while supporting its domestic industrial base and operational needs of the Royal Canadian Navy.
“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,” said Hee Cheul Kim, president and chief executive officer of Hanwha Ocean.
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