Canada Announces National Shipbuilding Strategy

Friday, June 04, 2010

Davie Yards welcomed the announcement of the National Shipbuilding Procurement Strategy by the Government of Canada creating dedicated shipyards for the construction of the large ships included in the federal fleet renewal program.

"We are pleased that the government is moving forward with this strategy that will ensure a balanced workload in the shipyards for the years to come and help develop a strong expertise in shipbuilding in Canada. This is good news for Davie and the entire Canadian marine industry", said the President and CEO of Davie, Gustav Johan Nydal.

The shipbuilding strategy unveiled a $40b program to build approximately 50 ships to renew Canadian Navy and Canadian Coast Guard fleets over the next 30 years. The Government of Canada has announced that two shipyards will be selected for the procurement of large ships - one to build combat vessels, the other to build non-combat vessels. The construction of smaller ships will be set aside for competitive procurement among other Canadian shipyards.

"Davie is the only yard with the existing facilities to build the largest vessels such as the Joint Support Ships for the Navy and the large icebreakers for the Coast Guard," said Nydal. "The federal fleet renewal program supports a promising future for Davie. We expect that this announcement will assist the company in its restructuring process by enhancing its attractiveness to potential new investors."

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