Shares of South Korea's Hanwha Ocean plunged about 23% Tuesday after the company lost its bid to build Canada's next fleet of submarines.
Canadian Prime Minister Mark Carney announced Monday that Germany's ThyssenKrupp Marine Systems, or TKMS, would be the preferred supplier for the submarines.
This is expected to be a setback for Hanwha Ocean, as the contract was estimated to be up to $100 billion over three decades.
South Korean President Lee Jae Myung stated on his Facebook page that although the results were not as expected, "challenges inevitably bring both successes and disappointments."
TKMS' 212CD submarine platform is shared by Germany and Norway, two of Canada's closest allies.
"The announcement marks the start of a new chapter in defense cooperation between three close NATO allies," TKMS said.
The TKMS contract will allow Canada access to European defense and industrial networks.
