Shares in South Korean shipbuilder Hanwha Ocean plunged almost 24% on Tuesday, after the company lost a multibillion-dollar contract for Canadian submarines to German naval shipbuilder TKMS.
Kiel-based TKMS is to supply the country with up to 12 submarines, Canadian Prime Minister Mark Carney announced in Halifax on Monday.
According to media reports, the contract - including maintenance and operations - is worth 100 billion Canadian dollars ($70.4 billion) over several decades.
Disappointment at the South Korean rival runs deep.
"We were not able to overcome the barrier posed by the NATO alliance, despite making all-out efforts backed by the government's full support," Hanwha Ocean said in an initial statement, implying that the company saw the Canadian government's choice as a strategic decision.
Unlike Germany, South Korea is not a full NATO member, although it is regarded as a key partner nation of the military alliance in the Indo-Pacific.
South Korean President Lee Jae Myung, who is attending the NATO summit in Ankara, also commented on the decision.
"Our submarines have proven their excellent performance and technology through square competition with the world's submarine powers," Lee wrote on his Facebook account.
While the desired result had not been achieved, he said valuable experience had been gained to strengthen South Korea's competitiveness.
And after hitting up the Koreans for the blackhole that is Ukraine.
Tsk.
No comments:
Post a Comment