Davie Looking to Acquire U.S. Shipyard
Davie is looking to acquire a U.S. shipyard to qualify to build polar icebreakers for the American government.
The White House announced this week that Levis, Que.-based Davie intends to make a new long-term commitment to American shipbuilding due to the Biden-Harris administration’s efforts to strengthen the sector in the U.S.
“Pending final site and partner selection, this would include a major investment in a U.S. shipyard,” the White House said in a statement.
The company ranks as Canada’s largest shipbuilder, according to multiple reports. While reporting Davie’s investment plan, the White House touted the company’s history that dates back to 1825 and its delivery of about 720 specialized ships.
The company is having “confidential conversations with various shipyards in the U.S.” about either a partnership or an acquisition. Marcel Poulin, a spokesman for Davie, told the Canadian Press.
Long-time protectionist law requires U.S. navy and coast guard ships to be built in the country. Therefore, Davie needs to have a shipyard in the U.S., the wire service reported.
“The reason why the U.S. is interested in having Davie come to the U.S. market is precisely because we are the world leader in icebreakers,” Poulin told CP. “It’s proof that no one can dispute that Davie is definitely the world leader in this niche market.”
Davie’s interest in acquiring a U.S. shipbuilding facility comes after the U.S., Canada and Finland recently signed a trilateral agreement, called the ICE Pact, to boost icebreaker production.
In 2023, Davie acquired Helsinki fleet, which has build more than half of the world’s icebreaker fleet, according to the White House.
“What seems to be shaping up is that this [acquisition] then allowed Davie shipyard to basically take that technology that they have acquired from the Finns and then build it in the United States,” Rob Huebert, a University of Calgary professor studying Arctic sovereignty and security, told CP.
The U.S., Canada and Finland have long been concerned about Russia’s potential annexation of the Arctic. Huebert told CP that Russia has a “significant advantage” in the number of icebreakers at its disposal, allowing it to manoeuvre more easily in the Arctic compared with the U.S. and its allies.
“Canada and the United States have had great difficulty in ever being able to get their act together to build icebreakers,” he told his interviewer. “It’s been a gong show, to put it politely.”
Earlier this year, Ottawa awarded Davie an $8.5-billion government contract to build seven icebreakers, including one polar-class version, and two hybrid-powered ferries. Until then, Davie had relied largely on hundreds of millions of dollars worth of Quebec government support.
Photo: CNW Group/Davie
- ◦Sale/Acquisition
- ◦Policy/Gov't