Federal Government Announces Massive Shipbuilding Contract Using Canadian Steel

Chantier Davie Canada Inc will build six new icebreakers.

With Canada embroiled in a trade war with the United States, and with the United States threatening further tariffs on Canadian steel, defence spending can be a key way to strengthen core Canadian industries. Along those lines, the announcement of an $11 billion contract for Chantier Davie Canada to build six new icebreakers for the Canadian Coast Guard.

The purchase was first announced in 2019, and the awarding of the contract comes at a time when Canada’s steel industry is under pressure, pressure that will now be partially relieved through this large-scale project.

You can read Prime Minister Carney’s full remarks from the announcement below:

“In a rapidly changing world, Canada is setting a new course. We are building our strength at home, diversifying our trading relationships abroad, and investing in the infrastructure that will secure our future. From the ports and corridors that move Canadian goods to market, to the ships that keep our trade routes open, we are laying the foundations of a stronger, more self-reliant country.

Established trading relationships are being tested, and Canada is not standing still. We are moving fast, seizing new opportunities, and reducing our dependence on any single partner.

That is why the Prime Minister, Mark Carney, today announced the largest shipbuilding contract in Québec’s history. The Government of Canada will invest more than $11 billion to build six new program icebreakers for the Canadian Coast Guard in partnership with Chantier Davie Canada Inc. This historic investment grows Canada’s domestic shipbuilding industry, strengthens our ability to keep critical trade routes open, and reinforces our strategic autonomy.

All six icebreakers will be built in Canada at the Davie Shipyard in Lévis, Québec, creating nearly 5,000 good jobs in the construction phase alone and contributing nearly $650 million annually to Canada’s GDP. Under the government’s Buy Canadian Policy, these vessels will be built with Canadian steel and other domestic materials, while maximising opportunities for Canadian manufacturers, suppliers, and small and medium-sized businesses.

The program icebreakers will replace the Coast Guard’s aging heavy and medium icebreakers – the ships that work Atlantic Canada and the St. Lawrence through the depth of winter, and the Arctic through the summer season. They cut open our most vital sea lanes, answer the call of ships in distress, and come to the aid of vessels trapped in the ice.

This investment will equip the women and men of the Canadian Coast Guard – the civilian service Canadians count on to keep our waters safe – with the modern ships they need to answer the call, from search and rescue to environmental response, for decades to come. Additionally, it secures Canada’s position as the home of NATO’s largest icebreaking fleet, bolsters national security in the North, and protects Canadian interests. Construction will begin in 2027, this first ship will be ready five years later, and the full fleet will be in service by 2038.

Canada’s new government is laser-focused on building a stronger, more independent, more resilient Canadian economy that drives prosperity for all. This is our economic strategy at work. We are expanding the Port of Montréal at Contrecœur and the Port of Québec to move more Canadian products to global markets. And we are using major federal procurement, from armoured vehicles to submarines and icebreakers, to build Canadian industrial capacity, strengthen domestic supply chains, and create high-paying careers here at home.

Canada is a trading nation with the world’s longest coastline. Today, we are strengthening our capacity to build ships at home, assert our presence in the Arctic, keep our waterways open, and move Canadian resources to new markets around the world.”

These are the kinds of projects Canada needs more of. Canadian workers using Canadian resources to build up our strength and sovereignty.

Spencer Fernando

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