Chantier Davie Canada Inc., Canada’s largest shipbuilder, announced plans last month to invest in a $1 billion expansion as part of its acquisition of shipyard assets in Galveston and Port Arthur previously owned by Gulf Copper & Manufacturing Corporation.
Davie says it hopes to close the transaction this summer, subject to financial, legal and regulatory closing conditions as well as land lease negotiations with the Galveston Wharves Board of Trustees.
The acquisition of Copper Gulf’s facilities by a Canadian company could significantly improve international security co-operation, as well as trigger economic and employment expansion in the area.
The U.S. government has expressed its intent to revive domestic shipbuilding.
President Donald Trump published an Executive Order earlier this year titled “Restoring America’s Maritime Dominance,” advocating for more domestic shipbuilding. American shipyards currently produce less than 1.0 per cent of the world’s ships, most of which are relatively small domestic vessels.
“The commercial shipbuilding capacity and maritime workforce of the United States has been weakened by decades of government neglect,” the order reads, “leading to the decline of a once strong industrial base while simultaneously empowering our adversaries and eroding United States national security.”
Davie, headquartered in Lévis, Qué., was established in 1825. The company is well known for its icebreaker expertise. It was purchased in 2012 by the privately-controlled Finnish-based Inocea Group of Companies, owners of the Helsinki Shipyard, the world’s leading icebreaker and ice-class shipbuilder. The expertise of its Finnish owners likely played a role in Davie recently being awarded a $3.25-billion contract by the Government of Canada to build a polar icebreaker by 2030.
Although building icebreakers in Texas may seem curious, the acquisition may fit well with U.S. defence plans. However, as Davie explains, the company had already been exploring ways to expand its shipbuilding presence in the United States. Its interest was further triggered when the American Canadian and Finnish governments signed the 2024 Icebreaker Collaboration Effort (ICE Pact), a trilateral agreement to collaborate on icebreakers.
Currently, the United States has only three Arctic-ready icebreakers in service. As climate change has opened the Arctic to increased marine traffic, North American security concerns have grown. In January, Trump called for the construction for up to 40 icebreakers and, as recently as March, indicated he was prepared to have some of these built in Finland. This now may not be necessary.
“Adding an American shipyard would make Davie uniquely positioned in the trilateral ICE Pact to deliver advanced icebreakers at speed, scale and competitive cost, countering adversaries’ heavily subsidized programs,” the company says.
Although the transaction between Davie and Gulf Copper had been in negotiation for some time prior to Trump’s re-election, Davie’s new presence in Texas bodes well for both the Canadian company and the United States. With Washington indicating strong support for the transaction, foreign sourcing of the required specialized icebreakers now may not be necessary.
Over the past 75 years, Texas-based Gulf Copper has provided high-quality ship repair, offshore services and marine infrastructure solutions for the oil and gas, marine transportation, petrochemical and government sectors through its strategically located shipyards, dry docks and fabrication facilities across the Gulf Coast.
Davie’s plan is to invest $1 billion to upgrade and expand the facilities in Galveston and Port Arthur while also maintaining Gulf Copper’s present activities. Moving into the building of icebreakers could generate an estimated 4,000 new jobs directly at the shipyard and throughout the supply chain.
Both Davie and Gulf Copper are excited about future prospects.
“We share a vision with Gulf Copper to make Texas a world-class hub for American icebreaker and complex ship production,” James Davies, president and CEO of Davie said. “Texas is ready to lead a new Golden Age of American shipbuilding—backed by our commitment to delivering ships on time, on budget and in service of national security priorities.”
“For the first time in decades, complex shipbuilding could return to Galveston and Port Arthur, this time backed by one of the world’s fastest-growing specialized shipbuilders,” added Gulf Copper CEO Steve Hale. “Davie brings a bold vision: to make Texas the cornerstone of their U.S. expansion. That means opportunity for our employees, our partners, and our communities.”
