Davie Shipbuilding has officially received an $8 billion fixed-price contract to construct six new icebreakers for the Canadian Coast Guard. This marks a significant update in Canada's efforts to modernize its Arctic fleet.
The contract was announced by Prime Minister Mark Carney earlier this week at Davie’s shipyard in Lévis, Quebec. Under this fixed-price agreement, Davie will take on more responsibility for managing costs and operations as it moves into mass production.
Construction of the first icebreaker is set to begin in 2027, with deliveries planned throughout the 2030s.
These six ships will replace outdated heavy and medium icebreakers currently used by the Canadian Coast Guard in Atlantic Canada, the St. Lawrence waterways, and the Great Lakes during winter, before heading to the Arctic in the summer. Their roles will include keeping shipping routes open, supporting northern communities, ensuring maritime security, and conducting scientific operations.
According to previous reports, the Polar Class 3 vessels will measure about 110 to 120 meters long and will be able to move at three knots through ice that is 1.4 meters thick. They will have a range of around 20,000 nautical miles at 11 knots and can accommodate a medium Coast Guard helicopter.
A key point about this contract is its structure. Davie described this approach as a change from traditional Canadian shipbuilding methods, allowing the shipyard more control over the program and its supply chain, while also accepting more risk.
“This contract demonstrates Canada’s trust in Davie’s ability to deliver complex, essential ships,” said Davie CEO James Davies. “I am very proud of our team and partners, who consistently drive productivity and innovation in shipbuilding. Together, we are ready to deliver.”
The order for six ships provides Davie with a valuable opportunity in shipbuilding: a long production run of vessels from the same class.
Davie and its parent company, Inocea, believe this will enhance productivity from ship to ship, rather than constantly ramping production up and down between different government projects.
“Building multiple vessels within the same class will allow our teams to improve continuously, acquire new skills, and boost productivity with each ship we make,” said Alex Vicefield, chairman and CEO of Inocea. He noted that these improvements should lead to greater efficiency and lower costs over the program’s lifespan.
Davie President Lindsey Kettel stated that the contract also ensures long-term stability for the shipyard’s workforce and suppliers, as the company continues to invest in its facilities.
The program is expected to heavily rely on Canadian suppliers, materials, and manufacturing capabilities, in line with Ottawa’s Buy Canadian policy aimed at strengthening its domestic defense industry.
For Davie, this contract adds another major icebreaker project to a rapidly growing portfolio that includes orders from Canada, Finland, and the United States.
The company is already working on a larger Polar Class 2 icebreaker, the CCGS Arpatuuq, also known as Polar Max, which is being constructed using a hybrid model involving its Helsinki Shipyard in Finland and Lévis facility. This 22,800-ton vessel is scheduled for delivery in 2030. Additionally, Davie’s Lévis yard is undergoing an $840 million modernization to enhance its capacity to build large, complex ships.
Davie has also positioned itself as a key supplier for the U.S. Coast Guard.
Its U.S. subsidiary, Davie Defense, recently signed a $3.5 billion contract for five Arctic Security Cutters. The first two will be built at the Helsinki Shipyard, with the remaining three constructed at Davie’s Gulf Copper facilities in Texas.
The company plans to invest up to $1 billion in its Texas facilities to create what it refers to as an “American Icebreaker Factory.”
These developments place Davie and Inocea in a unique situation as Canada, the U.S., and Finland work together to rebuild Western icebreaker capacity under the ICE Pact framework.
Inocea currently operates five major shipyard facilities across Canada, the U.S., and Finland, allowing the group to leverage Helsinki’s extensive icebreaker experience while increasing production capabilities in North America.
For Canada, this latest contract is part of a broader icebreaker expansion. In addition to the six new icebreakers, Davie is constructing the CCGS Arpatuuq, while Seaspan’s Vancouver Shipyards is building another Polar Class 2 icebreaker, the CCGS Imnaryuaq.
This investment comes as Arctic nations aim to replace aging fleets and enhance their operations in northern waters, where icebreakers are increasingly recognized not just for winter navigation but as vital infrastructure for trade, sovereignty, and security.