With 110 million from Quebec | Davie buys world’s largest icebreaker maker

While awaiting the formalization of its first contract under the National Shipbuilding Strategy (SNCN), the Davie shipyard is completing a file on which it has been working for approximately ten months: the acquisition of the largest icebreaker manufacturer in the world, in Finland.

The amount of the transaction announced Friday was not disclosed, but the company benefits from financial assistance totaling 110 million – 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 allow Davie to modernize its facilities and be integrated into the SNCN.

“Our loan is guaranteed by the assets, so there is no financial risk as such for the government,” said the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, in Montreal , alongside an announcement. “I think that ultimately there will be repercussions [au Québec]. We cannot have written guarantees, but they will be contracts in the future. »

This nevertheless brings to 630 million the scale of financial support granted to Davie since the spring.

Established in the Finnish capital, Helsinki Shipyard Oy (HSO) has single-handedly built 60% of the world’s icebreaker fleet. However, he has been in turmoil since the start of the war in Ukraine. Owned by Russian industrialists, the shipyard saw the doors of its main market, Russia, closed in the wake of the sanctions imposed on Moscow after its armed offensive in Ukraine.

Sensitive transaction

In the current context, such a strategic transaction involving Russian shareholders was considered very delicate. The obstacles seem likely to have been overcome, according to Mr. Fitzgibbon.

“The Americans are happy, the Europeans are happy,” he said.

With Davie at the helm, HSO will likely be able to start on a new footing with new opportunities within NATO, which Finland joined in April.

Several members of this military alliance plan to purchase icebreakers in the coming years, and according to our information, some potential customers have already contacted the parties to find out when production of the new ships could begin.

“Checking beforehand [due diligence] was carried out strictly,” says Marcel Poulin, director, external affairs and industrial participation at Davie, during a telephone interview. “No sanctioned person was involved in this transaction. We cannot say that it was easy, but we always believed in our ability to achieve it. »

Mr. Poulin affirms that the acquisition could not have moved forward without the help of Quebec.

Dismissed from SNCN more than a decade ago, Davie was finally integrated last April. This could allow the Quebec shipyard to potentially build seven new icebreakers for the Canadian Coast Guard – potential contracts worth 8.5 billion.

The latest news is that negotiations are continuing between Davie and Ottawa. According to our information, talks are going well, but an announcement does not seem imminent. In principle, it should not occur during the annual meeting of the Quebec shipbuilding supply chain organized by the Chantier Davie Canada Suppliers Association, next week, in the Old Capital.

Expected benefits

This breakthrough by Davie in Finland will end up having positive repercussions in Quebec, affirm the shipyard and its association of suppliers.

“The expertise developed here will be able to achieve exports with our Finnish partner,” says Mr. Poulin.

On the Association’s side, President and CEO Pierre Drapeau believes that the transaction will accelerate the steps taken by the group in Europe to forge commercial ties on the other side of the Atlantic.

“We have just opened a window on the world market which is not trivial,” says Mr. Drapeau. We also maintain a headquarters in shipbuilding and it is strengthening. »

With the collaboration of Lila Dussault and Vincent Larouche, The Press