Hanwha Ocean shares tumbled approximately 23% in Seoul trading Tuesday, wiping out billions in market value after the South Korean shipbuilder was eliminated from the race to build Canada’s next-generation submarine fleet.
The sharp sell-off followed an announcement by Canadian Prime Minister Mark Carney on Monday, who confirmed that Germany’s Thyssenkrupp Marine Systems (TKMS) had been selected as the preferred supplier for the project.
The decision marks a significant setback for Hanwha Ocean, which had been widely viewed as a strong contender in the competitive bidding process.
In contrast, shares of Thyssenkrupp Marine Systems climbed sharply in European trading.
The German defense contractor’s selection underscores a shift in the global defense procurement landscape, with European firms gaining ground in North American defense contracts.
The win for TKMS is expected to bolster its order book and reinforce its position as a leading player in the submarine market.