Canada is placing an $11 billion bet that rebuilding its Arctic fleet can also rebuild its domestic shipbuilding industry.
Prime Minister Mark Carney announced Monday that six new program icebreakers for the Canadian Coast Guard will be built by Chantier Davie in Lévis, Quebec, marking what the government called the largest shipbuilding contract in Quebec’s history.
The investment is aimed at replacing aging Coast Guard vessels while expanding Canada’s ability to operate in northern waters as Arctic shipping, resource activity, and security concerns increase. The government said the project will create nearly 5,000 jobs during construction and contribute about $650 million annually to Canada’s GDP.
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The icebreaker announcement is part of a broader effort to revive Canada’s shipbuilding sector after years of fleet renewal programs that have faced delays and rising costs. Under the National Shipbuilding Strategy, Canada has already committed billions toward naval and Coast Guard vessels, including polar icebreakers, Arctic patrol ships, and future multi-purpose icebreakers.
For Davie, the contract expands its role as a key Canadian shipbuilder. The company is already responsible for one of Canada’s future polar icebreakers, with Ottawa previously awarding the shipyard a $3.25 billion construction contract for that vessel.
Ottawa is positioning the spending as both an Arctic sovereignty measure and an industrial policy initiative. The government said the ships will be built using Canadian steel and materials, increasing opportunities for domestic suppliers.
