Shipbuilding | Davie sets sail for the United States

After Finland last year, the shipbuilding company Davie is heading to the United States, where the White House is trying to seriously revamp its major shipbuilding programs, which are running into years of delays.

“We are in talks with several partners,” confirmed Davie’s external affairs director, Marcel Poulin, during a telephone interview with The Press. However, we are not ready to make an announcement at this time.”

The Lévis-based builder did not specify where and how it planned to set foot south of the border. The company could enter into a partnership with an existing shipyard, acquire one or set up a joint venture. Mr. Poulin did not elaborate on these scenarios.

This American breakthrough by Davie comes in two parts.

On the one hand, it is part of the Icebreaker Collaboration Pact announced on July 11 by Canada, the United States and Finland, an offensive aimed at counterbalancing Russia and China. Several dozen icebreakers are expected to be built in the Western world over the next few years.

Davie is also looking to our southern neighbors at a time when the American shipbuilding industry is struggling to meet demand.

Catch up

Earlier this year, the U.S. Navy acknowledged that its major programs—building submarines, aircraft carriers and other specialized ships—were running into delays. In some cases, the delays are stretching more than 36 months, according to various U.S. defense industry publications.

Under the Jones Actany vessel that engages in cabotage – which links two ports in the United States – must be built on American territory. This is what forces Davie to put down roots south of the border.

But with construction giants like Huntington Ingalls Industries, Austal and Newport News Shipbuilding having overflowing order books, it shouldn’t come as a surprise that there are some easing restrictions. That’s according to Richard Shimooka, a researcher at the Macdonald-Laurier Institute of Canada who specializes in defence issues.

“There is no capacity available even within the second-tier yards,” the expert said. “The construction has to be done in the United States, but not all the work has to be done there. There could be parts as well as subassembly that is done elsewhere. This is a good approach that Davie has.”

On a roll

In Canada, Davie can hope to build six new icebreakers and a polar icebreaker for the Canadian Coast Guard thanks to its return to the National Shipbuilding Strategy (NSS), which was formalized in spring 2023. The Lévis shipyard has already begun initial design work, but does not yet know when construction of the ships will begin.

In Finland, after several months of talks, Davie had formalized, last November, the acquisition of Helsinki Shipyard Oy, the largest icebreaker builder in the world. The amount of the transaction had not been disclosed, but the Quebec builder had benefited from $110 million in aid – an investment of $43 million and a loan of $67 million – from the Legault government.

This is in addition to the approximately 520 million granted by Quebec to enable Davie to modernize its facilities and be integrated into the SNCN.

The new U.S. facility is expected to represent another major investment for Davie. Poulin did not put a figure on the potential cost, but according to information released by the White House, it will be a “major investment” in the U.S. shipbuilding niche.