National Shipbuilding Strategy | Contracts that make Davie popular

(Ottawa) Having the assurance of building ships for the federal government does not change the world, except that… The Davie shipyard got a glimpse of it during its visit to the annual meeting of the defense sector, in the federal capital – where its acquisition project in Finland was also discussed.

“It’s a completely different situation,” explains the director, external affairs and industrial participation at Davie, Marcel Poulin, during an interview with The Press. “Before, what we talked about was developing a business relationship for potential contracts. Now, the contracts will come and we can concretize these business relationships. »

The Lévis shipyard is a regular at CANSEC, the defense industry high mass held earlier this week. Incorporated into the National Shipbuilding Strategy (NSCS) last April, the company is negotiating the potential construction of seven new icebreakers for the Canadian Coast Guard – potential contracts worth $8.5 billion. She has not gone unnoticed in Ottawa this year.

Mr. Poulin did not take long to notice this.

CANSEC does not only bring together manufacturers of military equipment such as helicopters, vehicles and fighter planes. There are also cybersecurity specialists, manufacturers of radars, sensors and other technological solutions that can, for example, be found on an icebreaker. These are the companies that have an interest in getting closer to the Davie shipyard.

Identified as SNCN’s third supplier on April 4, the company is continuing its negotiations with the Canadian Coast Guard to finalize the contract for the construction of the first icebreaker. We are talking about “a matter of months” to conclude this round of talks, according to Mr. Poulin.

Still room

Building new ships for the federal government is expected to take up 70% of shipbuilding capacity at Davie. Despite all the work that will ensue from SNCN, the shipyard will be able to carry out other contracts. This is also the message that Davie wishes to pass on within the framework of these appointments.

This past week has also been an opportunity for the shipyard to reflect on its international ambitions. The Ottawa meeting was the scene of a meeting with the Finnish ambassador to Canada, Roy Eriksson, explained Mr. Poulin, without venting the content of the exchanges between the two parties.

Davie still holds an exclusive option to acquire Helsinki Shipyard Oy, a shipyard located in the Finnish capital and owned by Russian industrialists. This shipyard saw the doors of its main market, Russia, closed in the wake of sanctions imposed on Russia after the invasion of Ukraine.

“The acquisition project is still on the table,” says Mr. Poulin. We are in due diligence [due diligence]. We have exclusive business development in Finland to find work over the next few years. There is nothing officially purchased. »

If completed, this transaction would position Davie as a leader in the construction of icebreakers on an international scale. The challenge for the company, owned by European investors Alex Vicefield and James Davies, is to determine whether it can find new opportunities within the NATO alliance for Helsinki Shipyard Oy.

The Press reported on March 28 that the Legault government is following this case closely. To allow Davie access to SNCN, Quebec has agreed to release 520 million to enable the shipyard to modernize its facilities. The bill for this project is estimated at 840 million.