Canada-based multinational shipbuilder Davie continues to expand its operations despite the looming global trade wars. The company has decided to acquire an American shipyard to strengthen its presence in the United States. The move is a key part of Davie’s goal of becoming one of the largest and most versatile shipbuilding centers in North America.
“Our current initiatives are progressing as planned and we are making significant progress on the acquisition of an established U.S. shipbuilder,” spokesman Paul Barrett said in a statement.
Huge Investments in Quebec
Davie aims to modernize the Lévis shipyard in Quebec, making the region a shipbuilding hub, with plans to build seven heavy icebreakers and two hybrid ferries under Canada’s National Shipbuilding Strategy.
Within the scope of these projects, two major contracts were signed with US-based Pearlson & Pearlson Inc. and Canadian construction firm Dinamo. The Quebec government is also supporting the modernization of the shipyard by investing C$519 million in the project. The investments include new buildings, assembly halls, launch ramps and development of coastal infrastructure.
ICE Pact: Tripartite Cooperation
Davie, Canada, USA and Finland Trilateral Icebreaker Cooperation Effort (ICE Pact)The agreement, signed in the summer of 2023, aims to combine the knowledge and resources of the three countries to produce new generation icebreakers capable of operating in the Arctic throughout the year.
The ICE Pact is of strategic importance due to the rising geopolitical tensions in the Arctic. While Russia and China are increasing their influence in the Arctic, Western countries want to create a powerful fleet to protect their presence in the region.
But trade policies such as US President Donald Trump’s proposed 25% tariff on Canadian imports could make the future of such international cooperation uncertain. Despite this, Canada and Finland insist that the ICE Pact is progressing as planned. “Our cooperation with the US and Canada will continue because we need to increase our icebreaking capacity,” said Reko-Antti Suojanen, an official at the Finnish Ministry of Economy and Employment.
Davie's Strategic Moves
Davie’s acquisition of Helsinki Shipyard in 2023 gives the company a say in global icebreaker production. Finland has built most of the world’s largest icebreaker fleets to date, and holds critical engineering know-how and technology.
It remains unclear how Finland's icebreaker technology will be shared with the US under this agreement. The protection of intellectual property rights is of utmost importance to the US, said Barrett, a spokeswoman for Davie.
The ICE Pact, in which Canada, the US and Finland are collaborating, aims to strengthen the Western world’s strategic presence in the Arctic. However, factors such as global trade policies and US domestic politics will determine how this partnership will shape itself in the long term.
Once Davie’s planned U.S. shipyard acquisition is complete, the company will be the only shipbuilder with active operations in the three countries in the ICE Pact, boosting Davie’s international clout and strengthening Western countries’ hand in the Arctic competition.
