South Korean sub maker Hanwha signs agreement with Algoma Steel

By Canadian Press on January 26, 2026.

OTTAWA — South Korean submarine maker Hanwha Oceans says it has signed a series of partnership agreements with Canadian companies, including Sault Ste. Marie’s tariff-battered Algoma Steel.

Hanwha says it signed a memorandum of understanding with Algoma that pledges $275 million in financial support to stand up a new structural steel beam mill in Canada.

The pact also declares Hanwha’s intention to purchase steel products for both the construction of Canada’s new submarine fleet and the maintenance infrastructure to support it.

Both commitments come on the condition that Hanwha wins Ottawa’s massive, multi-billion-dollar procurement contract to supply the Royal Canadian Navy with up to 12 modern submarines.

Hanwha also signed co-operation agreements on Monday with Telesat, MDA Space, Cohere and PV Labs, all while a South Korean delegation of government and business officials visited Toronto.

Rival German bidder TKMS has also signed teaming agreements with Canadian companies, such as Quebec manufacturer Marmen and the artificial intelligence company Cohere.

This report by The Canadian Press was first published Jan. 26, 2026.

Kyle Duggan, The Canadian Press