Canada
July 8, 2026
Algoma in talks with TKMS following submarine deal
Written by Ethan Bernard
Algoma Steel is in talks with ThyssenKrupp Marine Systems (TKMS) following the Canadian government’s selection of the German company as the preferred supplier of submarines.
“TKMS has reengaged with Algoma Steel,” Terry Sheehan, Member of Parliament for Sault Ste. Marie, Ontario, told Canada’s SooToday following the announcement.
He said the companies were talking about how Algoma Steel might be involved with the various projects.
An Algoma spokesperson confirmed the news with SMU on Wednesday, saying: “I can confirm TKMS has reached out and we are looking forward to the discussion.”
The Canadian government announced on Monday it had chosen TKMS as its preferred supplier of submarines for the Royal Canadian Navy. This beat out an offer from South Korea’s Hanwha Ocean, which had been linked with Algoma Steel.
Recall Sault Ste. Marie, Ontario-based steelmaker Algoma had signed a binding memorandum of understanding (MoU) with maritime firm Hanwha Ocean earlier this year. It included up to US$250 million in potential value tied to structural steel development and submarine-program supply. That development reportedly included a structural beam mill in Sault Ste. Marie.
Regarding that mill, Sheehan reiterated he was still committed to getting it built in Sault Ste. Marie, according to SooToday.
As previously reported, Canada and TKMS will now enter into negotiations to finalize the contracts, scheduled to be concluded no later than the end of 2027. However, if the negotiations are unsuccessful, Canada may designate South Korea’s Hanwha Ocean as the preferred supplier and enter into negotiations with it.
