Hanwha Ocean, a global leading shipbuilder based in South Korea, and a Canadian steel producer Algoma Steel have entered a binding memorandum of understanding (MoU) to strengthen Canada’s industrial supply chain. The South Korean shipbuilder will provide up to US$250 million to support Algoma’s growth and the Canadian Patrol Submarine Project (CPSP).

Of this funding, US$200 million will be provided to Algoma for a potential structural steel beam mill in Sault Ste. Marie, Ontario. Besides, Hanwha Ocean commits to purchasing US$50 million of Algoma’s steel for submarine construction and MRO infrastructure in Nova Scotia and British Columbia.

This partnership is in line with Canada’s Industrial and Technological Benefits framework, aiming to secure domestic production and create skilled, long-term jobs.