Algoma Steel would supply material for land vehicles: Hanwha

The two agreements — which would help support two major industries hit hard by U.S. tariffs — are contingent on Hanwha winning the contract to supply the navy with a fleet of up to 12 submarines.

Hanwha Defence Canada CEO Glenn Copeland said if the firm wins the sub contract, planning for vehicle production will begin immediately.

“This is certain to happen if we win,” he told The Canadian Press in a phone interview.

“(The federal government has) asked for ‘build, partner, buy.’ The number 1 pillar is build, and this is what we’re giving back to Canada. We’ve heard them loud and clear.”

Prime Minister Mark Carney’s government released a defence industrial strategy in February that puts an emphasis on buying and investing in Canadian defence firms and partnering with other nations to co-produce military hardware.

Copeland said Hanwha would spend the next six months putting the joint venture together if it wins the sub competition, although the auto parts lobby would be in the driver’s seat since it has a controlling interest.

Hanwha made the steel announcement Monday at a Martinrea International facility in Vaughan, Ont., alongside a delegation of South Korean government officials who touted the country’s plans to ramp up trade in LNG and critical minerals.

The delegation held meetings with Canadian firms, including auto giants Magna International and Linamar.

Industry Minister Mélanie Joly said earlier this year the federal government is looking to attract automotive investments in Canada — specifically a new auto plant — through the submarine procurement project.

The automotive and steel sectors have been slammed by U.S. President Donald Trump’s ongoing trade war, which has lasted for more than a year.

This is not the first agreement Hanwha has reached with the steel sector.

The Korean conglomerate announced at the start of the year it had reached a long-term agreement with Sault Ste. Marie’s steel plant that would include $345 million in investment.

The agreement includes a plan to spin up new steel I-beam production and a commitment to procure Canadian-made steel for submarine construction.

The South Korean firm is competing with Germany’s TKMS for the massive multi-billion dollar contract to build up to 12 submarines.

Germany’s defence minister stumped for TKMS at last week’s Cansec military trade show in Ottawa through several public appearances, including one with his Canadian counterpart Defence Minister David McGuinty.

Canadian officials said at the arms expo the federal government is expected to announce the winner of the contract this month.

The next big NATO summit is scheduled to start on July 7 in Ankara, Turkey.

This report by The Canadian Press was first published June 1, 2026.

Kyle Duggan, The Canadian Press

by The Canadian Press

Algoma Steel would supply material for land vehicles: Hanwha

Our Community