NATO Summit | More good news for Davie

(Quebec) Davie hopes that a tripartite agreement announced Thursday on the sidelines of the NATO summit in Washington will have significant repercussions on its Lévis shipyard and on the one it recently acquired in Finland.




Canada, the United States and Finland have announced the creation of the Icebreaker Collaboration PactOr ICE Pact The agreement signals the willingness of these countries to restart the construction of icebreakers in a particularly tense context in the Arctic.

“The idea, as I understand it, is that we are planning an acquisition of several dozen icebreakers by countries allied to Canada, and we want to create expertise in these three countries to make it available to our allies who would like to buy these ships,” explains Justin Massie, full professor of political science at UQAM.

In a statement, the White House said that shipbuilding requires a significant investment of capital, and that in this context “long-term orders for multiple ships are essential for the success of a shipyard.”

The message to allies is therefore clear: Canada, the United States and Finland – which was participating in its first NATO summit as a member in good standing – have shipyards and are ready to deliver icebreakers, a vessel that requires rare expertise.

Davie believes it is very well placed to benefit from the agreement. “We have two key assets: we have the shipyard that has built the most icebreakers in the world, the Helsinki shipyard, and we have the shipyard with the largest order book for icebreakers in the world, the Davie shipyard,” notes Marcel Poulin, spokesperson for the Davie shipyard.

Davie acquired the Finnish shipyard Helsinki Shipyard Oy last November, with the support of the Government of Quebec. It has also replenished its order book at its Lévis shipyard since its reintegration into the National Shipbuilding Strategy (NSS) in spring 2023.

“The geopolitical context means that we need icebreakers. China had a fourth icebreaker delivered this week. Russia currently has about fifty operational icebreakers,” notes Marcel Poulin. “The United States, Canada and Finland agree that NATO really needs to focus on acquiring new icebreakers.”

Allies in search of icebreakers

According to Canada’s Minister of Public Services and Procurement, Jean-Yves Duclos, “it is almost certain” that the Lévis shipyard will see benefits from this agreement.

PHOTO SEAN KILPATRICK, CANADIAN PRESS ARCHIVES

The icebreaker Henry Larsen of the Canadian Coast Guard

The shipyard can expect to build six new icebreakers and a polar icebreaker for the Canadian Coast Guard, thanks to its return to the National Strategy. Davie has already started initial design work, but does not yet know when construction of the ships will begin.

The Helsinki shipyard is available for contracts. Minister Duclos believes that the signal sent to the allies is clear. “With this alliance, we will be able to help other countries that do not have the capacity to build icebreakers, but need them to ensure their sovereignty.”

Justin Massie points out that Canada’s allied countries cannot all build their military equipment themselves, a practice that would be extremely inefficient.

It’s advantageous for our allies because it’s a very niche expertise. Creating shipyards for a few icebreakers takes a lot of resources and expertise for a handful of ships, and then the jobs disappear. The idea is to pool expertise.

Justin Massie, full professor of political science at UQAM

Davie’s spokesman said “there are over 80 icebreakers to be built in the Western world over the next few years.”

“Very few shipyards in the world have the expertise to build icebreakers,” adds Marcel Poulin. “Having the shipyard that has built the most in history is an asset. And having the shipyard with the largest order book is too.”

The announcement of the agreement was made at the NATO summit on Thursday, but could resonate beyond Atlanticist ears. “We can think of South Korea, Japan, Australia, which could be interested in buying icebreakers,” notes Justin Massie.


source site-55