Davie’s Quebec facility is currently undergoing an $840-million upgrade to bolster its capacity for the work set to begin there on a new Polar Max icebreaker destined for Canada’s Arctic.Jacques Boissinot/The Canadian Press
Canadian shipbuilder Chantier Davie Canada Inc. is getting an American sibling.
Davie’s parent company Inocea Group is establishing a new U.S. entity, Davie Defence Inc., to run its new Texas shipyards and bid for a contract from the U.S. government to increase its icebreaker fleet.
In June, Davie announced its intention to acquire shipyards in Galveston, Texas from Gulf Copper & Manufacturing Corporation. That transaction is now nearing completion (pending a few regulatory approvals) under Davie Defence Inc., which has dubbed its new facility the “American Icebreaker Factory.”
Work on icebreaker bound for Canadian Arctic begins at Davie shipyard in Finland
The new U.S. entity will be led by chief executive officer Kai Skvarla, who has previously worked on the United States Coast Guard’s naval shipbuilding program and most recently, British multinational Serco’s maritime and defence portfolio.
The decision to create a separate U.S. entity comes after a series of discussions between Davie and the federal government, which began under the Biden administration, said chief communications officer Paul Barrett. The signing of the Icebreaker Collaboration Effort by Canada, the U.S. and Finland in 2024 to expedite the building of polar vessels also played a role.
Logistically, it’s essential to have a U.S. entity and CEO, he said, adding that legislation by the Committee on Foreign Investment in the United States or Foreign Ownership, Control, or Influence regulations will be easier to navigate.
“That’s something you have to do, it’s not something you can choose to do, and that’s not just about the current administration, but that’s any administration,” Mr. Barrett said.
Upgrades to the Texas facility are estimated to cost Davie Defence Inc. US$1-billion and will be done purposefully to support the building of new U.S. Coast Guard ships, such as the Arctic Security Cutter (ASC).
In June, Davie also announced its intention to acquire shipyards in Port Arthur, Texas. That transaction is still in the works.
Davie’s Quebec facility is currently undergoing an $840-million upgrade to bolster its capacity for the work set to begin there on a new Polar Max icebreaker destined for Canada’s Arctic. Work on this icebreaker has already begun at Davie’s shipyards in Helsinki, Finland and a steel-cutting ceremony to mark the start of construction in Canada should be held within a matter of months.
The improvements being made to the Texas facility will be similar to those happening in Quebec, Mr. Barrett said, with an emphasis on modernization and increasing capacity.
Once complete, the company said its work at the Texas shipyards could create 2,000 new jobs at the Gulf Copper facilities and more than 7,000 jobs statewide, through its supply chain.
The U.S. currently has three polar icebreakers – compared to Russia’s fleet of more than 40 and Canada’s 18. In partnership with Davie’s Helsinki shipyard, the company says it could deliver a new Arctic Security Cutter to the U.S. Coast Guard within 26 months.
“We have already built the ASC hull seven times over. This means we can build new American ASCs quickly and transfer Finland’s unrivalled icebreaker know-how to Texas,” Mr. Skvarla said.