South Korean Defence Giant Hanwha to Build Military Vehicles in Canada Using Algoma Steel

By: Ebenezer Adu-Gyamfi / Emmanuel Ayiku for GhanaianNewsCanada | June 2, 2026

South Korean defence manufacturer Hanwha Aerospace will use Canadian-made steel from Algoma Steel to build military vehicles in Canada, in a move expected to strengthen the country’s defence manufacturing sector and deepen industrial cooperation between Canada and South Korea.

The agreement forms part of Hanwha’s growing push to expand defence production capabilities in Canada as the company competes for military contracts and increases its presence in North America. Under the arrangement, steel supplied by Algoma Steel, based in Sault Ste. Marie, Ontario, will reportedly be used in the production of armoured military vehicles and related defence equipment.

Industry officials say the partnership could help strengthen domestic supply chains while supporting Canadian manufacturing jobs through increased demand for locally produced steel. The development also aligns with broader efforts by Ottawa to expand domestic defence production and reduce reliance on overseas suppliers amid growing geopolitical uncertainty and rising global military spending.

Hanwha Aerospace has become an increasingly influential player in the global defence industry, supplying military systems, armoured vehicles, artillery, aerospace equipment, and advanced defence technologies to countries across Europe, Asia, and North America. The company has in recent years expanded aggressively into international markets as governments boost military preparedness and defence modernization.

Algoma Steel, one of Canada’s major steel producers, is expected to benefit from increased industrial demand tied to defence manufacturing. Analysts say partnerships linking domestic raw materials to national defence projects could strengthen Canada’s industrial base while improving supply reliability for sensitive sectors.

The move comes as Canada continues evaluating military modernization projects and increasing investments in domestic industrial capacity linked to security and defence. Officials have emphasized the importance of strengthening manufacturing resilience while creating economic opportunities tied to strategic industries.

Supporters of the partnership say sourcing steel locally could improve efficiency, shorten supply chains, and help maintain high industrial standards in military production. Critics, however, argue that defence spending priorities should remain balanced against social and economic pressures facing governments.

For Hanwha, the deal signals deeper commitment to Canada’s defence market, while for Algoma Steel it represents a potentially important commercial opportunity tied to growing international demand for military equipment and infrastructure.