Canadian Shipbuilder Seaspan Signs Steel MoU for Polar Icebreaker Project

Seaspan Vancouver Shipyards has signed a Memorandum of Understanding with Ontario-based Stigterstaal Canada and Algoma Steel Inc. to establish a domestic steel supply chain for shipbuilding in Canada. The agreement, announced today, will explore Algoma Steel supplying both Class and non-Class steel to Seaspan through Stigterstaal, which will serve as a commercial and logistical subcontractor.

The partnership aims to support Seaspan’s construction of the Canadian Coast Guard’s new heavy polar icebreaker, which began this past April. This vessel will be the only heavy Polar Icebreaker fully built in Canada and, upon completion, will become the largest and most capable ship in the CCG’s fleet.

“This signed Memorandum of Understanding paves the way for Seaspan, Stigterstaal and Algoma to build on our shared goals of mutual economic benefits to our nation,” said Kate Morton, Vice President of Supply Chain Management at Seaspan. “Seaspan is committed to partnering with Algoma and Stigterstaal for future shipbuilding initiatives, ensuring that knowledge from other shipbuilding and icebreaking jurisdictions is developed in Canada.”

The icebreaker, measuring 158 meters in length and 28 meters in width, is designed to operate year-round in the high Arctic. The vessel will be capable of breaking 2.5 meters of ice continuously and will be deployed for scientific expeditions, search and rescue missions, and protecting Canada’s Arctic sovereignty.

Ronald de Groot, CEO of Stigterstaal Canada, highlighted recent upgrades at Algoma’s mill in Sault Ste. Marie: “Over the past few years, a significant upgrade has taken place at the mill, transforming it into one of the most modern heavy plate mills in the Western Hemisphere.”

Christopher Ford, Chief Commercial Officer at Algoma Steel, added, “With the completion of our plate mill modernization and the ongoing transformation to Electric Arc Furnace steelmaking, we are well positioned to deliver high-quality, made-in-Canada steel for critical national projects.”

The MoU aligns with Canada’s National Shipbuilding Strategy (NSS), under which Seaspan has already designed and built six vessels, with the icebreaker being the seventh. Through the NSS, Seaspan has established a supply chain that includes more than 800 Canadian companies.

The timing of this partnership is particularly significant given increasing Arctic activity and international competition. The project forms part of Canada’s response to growing cooperation between Russia and China in the Arctic, and aligns with the ICE Pact, a 2024 trilateral agreement between the United States, Canada, and Finland focused on developing Arctic and polar icebreakers.

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