An unsolicited CAD 1bn ($752m) bid by the Davie shipyard to build vessels for the Canadian government has been rejected.
The shipbuilder said it could save money for the state by constructing or converting icebreakers and multipurpose ships.
It lost out in 2013 to rival Seaspan for the contracts.
“The government is committed to a National Shipbuilding Strategy which adheres to an established and competitive procurement process.
