Analysis
January 30, 2026
CRU: South Korean ship maker may help Algoma build steel mill
Written by Kristen DiLandro
This news item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.
Canada’s Algoma Steel signed a binding Memorandum of Understanding (MoU) with Hanwha Ocean to support Canada’s submarine program and Algoma’s diversification strategy. A new structural steel beam mill may result.
Financial support, subject to conditions being met under the proposed long-term arrangement, comprises a CA$275 million (~US$ 202 million) contribution towards potential development of the new plant at Sault Ste Marie, Ontario, and up to CA$70 M (~US$50 million) of purchases of Algoma’s products for Hanwha’s involvement in the Canadian patrol submarine project.
“The strategic arrangement is intended to strengthen Canada’s domestic industrial base while supporting the long-term operational needs of the Royal Canadian Navy,” Algoma said.
Conclusion of the MoU is subject to Hanwha being awarded a contract under the submarine project.
Algoma has had to look for new sources for sales after its main market, the US, was effectively closed to it by President Donald Trump’s imposition of 50% tariffs on Canadian goods.
