Davie wins $11.3B icebreaker contract

Davie Shipbuilding has won a fixed-price contract worth $11.3 billion to construct six Program Icebreakers for the Canadian Coast Guard. The first vessel will start construction in 2027, with all ships to be delivered during the 2030s, according to a company announcement made at a ceremony in Lévis, Québec.

The historic contract is a key part of Canada's National Shipbuilding Strategy. It aims to renew and expand the nation's Arctic fleet. The government stated the deal reflects its confidence in Davie's ability to deliver complex, mission-critical vessels.

Fleet replacement and mission

The new icebreakers will replace the Coast Guard's existing heavy and medium icebreakers. These vessels operate in Atlantic Canada, the St. Lawrence waterways, and the Great Lakes during winter. They also serve in the Arctic during the summer months.

This investment is intended to ensure the Coast Guard can continue its critical services. These include keeping vital trade and transportation routes open year-round. The fleet also supports northern and coastal communities, protects Canadian waters, and strengthens sovereignty in the Arctic.

Economic and industrial impact

The contract is designed to bolster domestic supply chains and enhance industrial resilience. It prioritizes Canadian suppliers, materials, expertise, and manufacturing capacity in line with the government's Buy Canadian Policy. The program is expected to create high-quality jobs in Lévis and generate major economic benefits across Québec and the country.

James Davies, Davie's Chief Executive Officer, thanked the Government of Canada for its leadership. "This contract reflects Canada’s confidence in Davie’s ability to deliver complex, mission critical ships," he said.

Political and executive reaction

Québec Premier Christine Fréchette called the contract excellent news for workers, suppliers, and regions. She said the Québec government helped create the conditions for the win by supporting shipyard modernizations.

Federal Minister Joël Lightbound stated the skilled workers in Lévis are valued partners. He said the vessels will secure Canada's coastlines and waterways for the future.

Bernard Drainville, Québec's Minister of Economy, Innovation and Energy, said the program reinforces Québec's position as a strategic centre for Arctic vessel production. Steven Blainey, Mayor of Lévis, said the contract confirms Davie's position as the country's largest shipyard.

Alex Vicefield, Chairman of Davie's parent company Inocea, said delivering multiple vessels in a class will allow for continuous improvement and greater efficiency. Lindsey Kettel, President of Davie, called the program transformative, providing long-term certainty for the workforce.

Kevin Brosseau, Commissioner of the Canadian Coast Guard, said the new icebreakers will be game-changing assets. He stated they will equip crews with the capability needed for critical year-round operations, expand science mission capacity, and reinforce maritime security in an increasingly active Arctic region.