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Defense

Canadian shipyard in talks to buy US shipbuilder amid trade war talk

MILAN — Davie, a Quebec shipbuilder set to play a key role in a joint icebreaker production agreement between Canada, the United States and Finland, is moving forward with plans to expand its operations south of the border despite a looming trade war threatening the continent.

As part of the expansion, the Canada-based multinational shipbuilder has set out to acquire an American shipyard, which would secure an initial and important footprint in the U.S. for the company.

“Right now it’s business as usual with our U.S. entry plans. … We are also making progress with the acquisition of an established U.S. shipbuilder – if we are successful, we plan to upgrade as we are at the Quebec site,” Davie spokesman Paul Barrett told Defense News.

Davie has envisioned transforming its Lévis, Quebec, shipyard into North America’s largest, most versatile shipbuilding center.

In 2024, it signed two contracts to this end, one with the American firm Pearlson & Pearlson Inc., and another with the Canadian construction leader Dinamo, to modernize the site in order to deliver seven heavy icebreakers and two hybrid ferries under Canada’s National Shipbuilding Strategy.

The project is supported by nearly CAD $519 million in investments from the Quebec government and will deliver in part six new buildings and machinery, a new assembly hall and launch pad, and waterfront upgrades.

Davie has positioned itself as a crucial industry partner in the trilateral Icebreaker Collaboration Effort, or ICE Pact. The agreement, signed last summer, seeks to bring together Finnish, Canadian and U.S. know-how, resources and expertise to build best-in-class ice boats capable of operating year-round in the Arctic.

Recent remarks made by U.S. President Donald Trump suggesting that Canada and Greenland could become American states as well as the imposition of 25% tariffs on Canadian imports – tabled, for now – have casted doubts on the future of partnerships like the ICE Pact.

However, both the Canadian and Finnish government have told Defense News that the tense climate witnessed as of late between the two neighboring countries has not compromised cooperation amongst the parties involved.

“We continue implementing it as planned and look forward to cooperating with our allies and partners, the U.S. and Canada – we believe all parties are committed to Ice Pact efforts, as there is a need to strengthen the capabilities,” Reko-Antti Suojanen, senior ministerial adviser and ICE Pact coordinator at the Ministry of Economic Affairs and Employment of Finland, said.

All three countries are in relatively urgent need of bolstering their icebreaker fleets, as many are outdated or will soon be, while China and Russia have ramped up their shipbuilding efforts.

“The West’s competitors and adversaries are rapidly expanding Arctic ice breaking fleets to exert control in the region – despite ambitious shipbuilding programs, the U.S. and its allies remain far behind,” Barrett, the Davie spokesman, said.

Through the acquisition of Helsinki Shipyard in 2023, Davie gained access to Finland’s leading icebreaker intellectual property, having produced much of the world’s ice boat fleet.

It is not yet clear to what extent the knowledge will be shared with the U.S. under the agreement. Barrett noted that Davie company expects to play a lead role in discussions on how their IP will be properly protected and applied within this framework.

Once the Canadian manufacturer finalizes the purchase of the American shipbuilder, which the company declined to name, it will become the only one in the ICE Pact with a footprint in all three member nations.

Elisabeth Gosselin-Malo is a Europe correspondent for Defense News. She covers a wide range of topics related to military procurement and international security, and specializes in reporting on the aviation sector. She is based in Milan, Italy.

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