The company had said its Thunder Bay shipyard would benefit if it were chosen.

THUNDER BAY — The company that owns the Thunder Bay shipyard is expressing disappointment over Ottawa's decision to partner exclusively with a Quebec shipbuilder for new icebreakers for the Coast Guard.

The federal government announced Thursday that it has declared Davie Shipbuilding the only builder eligible to bid for the construction of at least half a dozen icebreakers.

Heddle Shipyards, which owns facilities in Thunder Bay, Port Weller and Hamilton, had partnered with the Netherlands-based Damen Shipbuilding conglomerate in an effort to qualify.

In an interview in October, Heddle president Shaun Padulo told Tbnewswatch a national shipbuilding strategy should require participation by an Ontario company, and he wanted Heddle to be given a "fair, open and transparent opportunity."

Padulo said Damen specializes in constructing ships using modules, and that the Dutch company was sending representatives to Heddle's Ontario operations to determine how modules could be constructed at each of them.

The company acquired the Thunder Bay shipyard in 2016.

"We're disappointed with the government's decision, and we're reviewing all of our options with respect to the third-shipyard initiative," Padulo told Tbnewswatch Monday.

He said the company is getting legal advice as it continues to believe "there were some issues with the process...The government's use of the national security exemption essentially allows them to make a decision without being questioned at all."

Padulo added that he's been concerned all along that "if there's only one bidder, there's no competition."

The government has also chosen shipyards in Halifax and Vancouver to participate in elements of the national shipbuilding program, which includes new warships, Arctic patrol vessels and Coast Guard science ships.

Padulo has stated previously that significant upgrades planned for the Thunder Bay shipyard will be expedited if Heddle receives some of the work.

The facility includes a dry dock, a large fabrication shop and a large machine shop.