Government of Canada awards contract to Chantier Davie Canada Inc. for construction of new polar icebreaker

LÉVIS, QC, March 8, 2025     /CNW/ - The National Shipbuilding Strategy (NSS) is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy (RCN) and the Canadian Coast Guard (CCG), create a sustainable shipbuilding sector, and generate economic benefits for Canadians.

The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, announced today that the Government of Canada has awarded a $3.25-billion contract (before tax) to Chantier Davie Canada Inc. (CDCI) for the construction of 1 of CCG's future polar icebreakers under the NSS. This marks a significant milestone in strengthening Canada's Arctic sovereignty and security. 

As part of its fleet renewal plan, the CCG is acquiring 2 polar icebreakers. The other polar icebreaker is being built by Seaspan's Vancouver Shipyards. These vessels will strengthen the CCG's Arctic presence, and have greater, more advanced capabilities than the current, most capable CCG icebreakers.

These larger, more powerful polar icebreakers will ensure the CCG's operations continue at higher latitudes for longer periods, while allowing its fleet to better support Indigenous Peoples, strengthen Arctic security, advance high Arctic science and better respond to maritime emergencies.

Chantier Davie will be building this ship in Lévis, Quebec. To accelerate its production, Chantier Davie will also leverage its Canadian-owned shipyard in Finland, Helsinki Shipyard. With Finland's unique expertise and track record building polar icebreakers, this will deliver Canadian ships faster and cheaper, and get them on the ice quicker. These investments are turbocharging the Canadian shipbuilding industry, creating good-paying jobs across Canada, and enhancing our defence and security partnerships around the world. 

In today's announcement, Minister Duclos also took the opportunity to officially launch the 15th anniversary of the NSS, which plays a major role in strengthening Canada's economy, having created or maintained over 20,400 good middle-class jobs per year. Since 2010, Canadian shipyards have delivered 8 large vessels and 34 small vessels to the RCN and the CCG, while supporting federal fleets with critical repair, refit and maintenance work.

The Arctic is an integral part of Canada and home to 150,000 Canadians and generations of Indigenous Peoples. With transformative agreements like the ICE Pact, signed last November with the United States and Finland, and through Our North, Strong and Free: A Renewed Vision for Canada's Defence, Canada is investing in our collective defence and security in the Arctic.

Canada will continue to work with its allies to protect our country, our continent and our democratic values.

Quotes

"Today marks a significant milestone in our commitment to enhancing our nation's maritime capabilities. The contract awarded to Chantier Davie Canada Inc. for the build of a new polar icebreaker underscores our dedication to ensuring safe and efficient navigation in Arctic regions. This state-of-the-art vessel will not only strengthen our icebreaking fleet, but will also support critical scientific research and environmental protection efforts, and ensure national security in the Arctic. We are proud to take this step forward in strengthening our maritime infrastructure for safeguarding Canada's sovereignty in the Arctic."

The Honourable Jean-Yves Duclos
Minister of Public Services and Procurement and Quebec Lieutenant

"Today's announcement is an important milestone under the National Shipbuilding Strategy. Along with the program icebreakers being built by Chantier Davie, the polar icebreakers will strengthen the Canadian Coast Guard's capacity in the Arctic and ensure our members have efficient, modern vessels to carry out their work."

The Honourable Diane Lebouthillier
Minister of Fisheries, Oceans and the Canadian Coast Guard

"Today's announcement of our partnership with Davie, in Quebec, to construct a polar icebreaker underscores our government's steadfast commitment to ensuring the Canadian Coast Guard can continue to protect Canada's sovereignty and interests, while also revitalizing our domestic shipbuilding industry, creating high-paying jobs and maximizing economic benefits in Quebec and across Canada."

The Honourable François-Philippe Champagne
Minister of Innovation, Science and Industry

"The Davie Shipyard continues to expand! This means 1,000 new jobs in Lévis, plus another 1,000 with suppliers across Québec. This is a major project that will not only create well-paying jobs but also strengthen our expertise in shipbuilding. With the current economic uncertainty and concerns about protecting the Arctic, we need projects like this to secure our future. I want to thank the federal government for acting quickly on this file."

François Legault
Premier of Québec

"This is a big day for Davie workers and for the people of Lévis. We're going to build the world's most advanced polar icebreaker right here at home: the PolarMax! As the MNA for Lévis, this is the result of months of hard work. Creating jobs and wealth in our community is even more important in today's uncertain economic climate. With the PolarMax, we're bringing good jobs and prosperity to Lévis, the Chaudière-Appalaches region, and all of Québec!"

Bernard Drainville
Minister of Education, Minister responsible for the Chaudière-Appalaches region, and MNA for Lévis

"Today's announcement is truly transformative. Canada deserves immense credit for partnering with Davie on this groundbreaking procurement. Delivering such a special ship in a timely manner is in the best interests of all Canadians. It will accelerate economic benefits for Quebecers and strengthen the skills of our talented Lévis shipbuilders. In a volatile world, we can and must forge shipbuilding collaborations with trusted allies like Finland to secure shared interests. If not now, then when?"

James Davies
President and Chief Executive Officer, Chantier Davie Canada Inc.

Quick facts

• The NSS is a long-term, multi-billion-dollar program aimed at renewing the fleets of the CCG and the RCN to ensure that Canada's maritime agencies have the modern ships they need to fulfill their missions, while revitalizing Canada's shipbuilding industry, creating middle-class jobs and maximizing economic benefits across the country.
• Quebec shipyards and businesses play an important role in supporting the federal government's shipbuilding needs.
• Approximately $4.5 billion in contracts have been awarded to Quebec companies under the NSS. This represents over 12% of the total value of contracts awarded under the NSS. These contracts have provided significant and long-term opportunities for skilled workers across the province.
• The CCG currently has 18 icebreakers of varying sizes and capabilities, making it the second-largest icebreaking fleet in the world.
• This strategy not only advances Canada's partnership with Finland under the Icebreaker Collaboration Effort (ICE Pact), but also leverages Finnish expertise to strengthen shipbuilding capacity in Canada.
• In May 2021, Canada announced the procurement of 2 new polar icebreakers under the NSS.
• Chantier Davie has already played a critical role in supporting Canada's fleets, receiving over $2.8 billion in contracts from 2012 to 2023 for various types of work on ships for the CCG, the RCN and Transport Canada.
• On November 13, 2024, Canada signed the ICE Pact with the United States and Finland to deepen existing cooperation, strengthen their shipbuilding industries, and allow new equipment and capabilities to be produced more quickly. These 3 key Arctic countries will work more closely together to engage our allies and partners to help meet future global demand for Arctic and polar vessels.
• Canada's Industrial and Technological Benefits Policy applies to the polar icebreaker project, which requires companies to make investments and provide business activities in Canada equal to the value of the related contracts.
• The NSS Value Proposition applies to the polar icebreaker project and requires CDCI to reinvest the equivalent of 0.5% of its polar contracts in 3 priority areas to benefit the greater Canadian marine industry: human resources development, technology investment and industrial development.

Associated links

• Backgrounder
• Polar icebreakers
• National Shipbuilding Strategy
• Canada signs new partnership agreement with United States and Finland to produce Arctic and polar icebreaker
• Our North, Strong and Free: A Renewed Vision for Canada's Defence

Follow us on X (Twitter)
Follow us on Facebook

SOURCE Public Services and Procurement Canada

Contacts: Mathis Denis, Press Secretary and Senior Communications Advisor, Office of the Honourable Jean-Yves Duclos, 343-573-1846, [email protected]; Media Relations, Public Services and Procurement Canada, 819-420-5501, [email protected]