Davie announced its intention to acquire shipbuilding assets located in Galveston and Port Arthur from Gulf Copper & Manufacturing Corporation, a Texas-based leader in ship repair, construction, and marine services.
The transaction remains subject to financial, legal, and regulatory closing conditions, as well as ground lease negotiations. Once the transaction is finalized, Davie expects to close the acquisition in the summer of 2025.
James Davies, President and CEO of Davie, said, “We share Gulf Copper’s vision to establish Texas as a world-class center for U.S. icebreaker and complex vessel production. Texas is poised to usher in a new golden age of American shipbuilding, supported by our commitment to delivering vessels on time, on budget, and in line with national security priorities.”
“The completion of this agreement will open a new chapter for Gulf Copper,” said Steve Hale, CEO. “For the first time in decades, complex shipbuilding could return to Galveston and Port Arthur, this time with the support of one of the world’s most dynamic specialty shipbuilders. Davie brings a bold vision: to make Texas the cornerstone of its U.S. expansion. This means new opportunities for our employees, our partners, and our communities.”
The planned acquisition would fulfill Davie’s July 2024 commitment to explore a permanent presence in the United States. It would support national priorities such as the U.S. Maritime Action Plan and the SHIPS for America Act. It would also align with the U.S. Coast Guard’s Arctic Security Cutter (ASC) program, which aims to rapidly deliver new Arctic-capable icebreakers while supporting the revitalization of U.S. shipbuilding.
Davie already has operations in Quebec, Canada, and in Helsinki, Finland, where approximately 50% of the world’s icebreaker fleet has been built. The addition of a U.S. shipyard would uniquely position Davie within the trilateral Icebreaker Collaboration Initiative (ICE Pact) to rapidly deliver cutting-edge icebreakers on a large scale and at a competitive cost, countering the heavily subsidized programs of its adversaries. Russia, for example, operates a fleet of nearly 50 Arctic-capable icebreakers.
With only three Arctic-capable icebreakers currently in service, the U.S. government has made closing this urgent national security gap a top priority.
Davie has commercially viable, production-ready icebreaker designs that meet U.S. mission requirements, delivering reduced delivery times and increased cost-effectiveness for U.S. taxpayers.
Once the transaction is finalized and contracts are signed, Davie plans to invest $1 billion to modernize and expand its facilities in Galveston and Port Arthur. The project could create approximately 4,000 jobs in the United States, including approximately 2,000 directly at Gulf Copper and another 2,000 throughout the supply chain.
To ensure the transaction’s expeditious completion, Davie is working closely with organizations and stakeholders in Galveston and Port Arthur, as well as the State of Texas. The acquisition has also received significant support in Washington, D.C.
This project comes in the context of Prime Minister Mark Carney’s historic announcement of Canada’s commitment to NATO’s 2% goal. Davie is ready to deliver the ships needed to defend Canada’s sovereignty and support its allies.
