Algoma Steel missed out on a lucrative federal submarine contract that could have brought new infrastructure and hundreds of jobs to the region. 

On Monday, Prime Minister Mark Carney revealed that Germany's ThyssenKrupp Marine Systems (TKMS) had been selected to build Canada's next fleet of up to 12 submarines, worth billions of dollars. TKMS beat out South Korea's Hanwha Ocean for the deal, which will see the new vessels replace the Royal Canadian Navy's aging Victoria-Class boats. 

The contract had been seen as a potential economic lifeline for Algoma, where roughly 1,000 steelworkers were laid off this year amid US tariffs and the company's shift to electric steelmaking. Ottawa had previously suggested that up to 500 of those workers could be rehired by the end of 2026 if a new mill materialized.