Korean shipbuilder agrees to $345M deal with Algoma Steel

https://www.ctvnews.ca/northern-ontario/article/korean-shipbuilder-bidding-for-submarine-contract-agrees-to-345m-deal-with-algoma-steel/

21 Comments

  1. Unfair-Woodpecker-22 on

    >If the deal moves ahead, Algoma will receive $275 million from Hanwha to develop a structural steel beam mill in Sault, as well as promises to purchase products from Algoma for the submarine production, bringing the value of the deal to $345 million.

    >The steel Hanwha would purchase from Algoma would be “for use in connection with its Canadian Patrol Submarine Project-related commitments, including submarine construction and the development of maintenance, repair and overhaul infrastructure required to support the fleet throughout its operational lifecycle in Canada,” said a Monday news release announcing the agreement.

    Hanwha also signed MOUs with other canadian companies today:

    MDA:https://www.prnewswire.com/news-releases/mda-space-and-hanwha-sign-mou-to-pursue-korean-military-constellation-program-302670300.html

    Telesat: https://www.thespec.com/globenewswire/telesat-and-hanwha-sign-strategic-cooperation-agreement-for-next-generation-space-and-marine-technologies/article_44be7a22-e1c4-5acc-8897-250cb4f2ade2.html

  2. That Hanwha is making some amazing moves! Quite incredible in my opinion. So pleased this flies in the face of the US and that turd they have for a leader.

  3. In Ottawa, Hanwah has ads for their KS III subs close to Parliament, on some busses, and billboards close to DND locations. They are going all out.

    Have not seen any TKMS ads yet.

  4. I’m a bit confused, they’re going to build the ships and subs in Korea but will they be using some Canadian steel? Logistically that seems a bit crazy, no? Would prefer to have shipbuilding happening here with their expertise, but, I assume thats probably not on the table…

  5. Standard_Program7042 on

    I have to hand it to the Koreans, they really know how get attentions and play the PR game.

  6. This is actually a pretty big news story.

    Algoma Steel is the only Canadian owned steel company and makes a variety of different strategic steel grades (shipbuilding, armour, steel plate) that isn’t found anywhere else in Canada. They have also been hammered by Trump’s tariffs.

    At the same time, Canada imports 100% of its structural beams.

    This arrangement was fine when Canada and the U.S. had an integrated industry. Now that is no longer the case. So trade deals like this are important for Canada’s sovereignty. It brings some domestic resiliency to the economy, which becomes important if future economic times will be tough.

  7. VanCityPhotoNewbie on

    They put their money where their mouth is. Let’s buy some Korean subs. At least we know they materials they are using are the best quality

  8. Even before this announcement, the Korean KS III submarines were the superior choice, with respect to delivery time (first sub within 6 years of signing the contract) and capabilities (vertical launch cruise missiles). Let’s make the choice sooner rather than later so we get these subs as soon as possible.

  9. restorativemarsh on

    So far Korea’s offers:

    1. Hanwha’s investment has re-started a stalled Labrador LNG project

    2. Signed MOUs with “more than a dozen Canadian companies”

    3. Signed partnership with Babcock Canada

    4. Hanwha commitment to Algoma Steel and using Canadian steel for the subs

    5. Submarine MRO facility

    6. Hyundai Motors chairman is currently in Canada, expected to pitch industrial cooperation (that may be an auto plant but more likely a hydrogen-related cooperation)

    7. Korean Air expected to pitch cooperation with Bombardier

  10. TrueTorontoFan on

    so that helps algoma steel a lot who had to recently lay off workers as a result of the tariffs.

  11. If we don’t buy submarines from South Korea it’ll be a generational fumble by the Liberals.

    This is step one towards what could be a huge economic partnership across the board.

  12. SHUT_DOWN_EVERYTHING on

    I bet Trump found out and it triggered him, hence the bump on South Korea tariffs he just announced, and blamed on their legislature. He’s obsessed with Canada right now, at least until next dementia spike.

  13. Now this is a deal all Canadian’s can be happy with. Not only are we getting Canadian jobs but we’re ensuring our ability to produce these materials at home for repairs or future ships.

    I believe the German ships were going to be built in Nova Scotia. I hope that they build these here as well.

  14. Hopefully that creates a chain reaction. Other developing nations start doing deals with Canada. Then US will be fomo.