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Canada is Providing $463M in Funding to Irving Shipbuilding for Upgrades to the Halifax Shipyard

The Government of Canada is investing in the Canadian Surface Combatant (CSC) project’s infrastructure to enhance and accelerate CSC construction, ensuring timely delivery to the RCN. This investment is expected to create or maintain over 800 jobs annually across various industries in the Canadian economy during the work period. The CSC project is one of the largest, most complex shipbuilding initiatives undertaken by the Government of Canada.

Public Services and Procurement Canada, on behalf of the Department of National Defence, has amended its definition contract with Irving Shipbuilding Inc. (ISI) for an additional $463 million for the CSC project (including taxes). This investment will enhance the efficiency of ship construction while improving project costs and delivering best value for Canadians.

The enhancements at ISI will expand and modify their site and facilities at the Halifax Shipyard and supporting facilities at Woodside Industries and Marine Fabricators in Dartmouth, Nova Scotia.

The Government of Canada’s NSS is a long-term, multi-billion-dollar program focused on renewing the Canadian Coast Guard and RCN fleets to ensure that Canada’s marine agencies have the modern ships they need to fulfill their missions, while revitalizing Canada’s marine industry, creating good middle-class jobs and ensuring economic benefits are realized across the country.

Contracts under the NSS are estimated to have contributed approximately $21.26 billion ($1.93 billion annually) to Canada’s gross domestic product, and created or maintained over 18,000 jobs annually between 2012 and 2022.

“Our government is committed to renewing the Royal Canadian Navy’s fleets, while maximizing economic benefits for the country as part of the National Shipbuilding Strategy. This investment will further ensure that the Canadian Surface Combatant vessels are built efficiently and on time for Royal Canadian Navy members.” The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement

“This key announcement reaffirms Canada’s commitment to deliver 15 state-of-the-art warships to the Royal Canadian Navy, and to provide Canadian Armed Forces members with the equipment needed to defend Canada. This investment will expand shipbuilding and support facilities on our East Coast – boosting and accelerating the capacity of our industry partners to deliver new ships to our Navy. Our government will continue to make landmark investments in our military, while supporting good jobs for Canadians.” The Honourable Bill Blair, Minister of National Defence

ADDITIONAL INFO

• The CSC project is part of the NSS, a long-term, multi-billion-dollar program to renew the Canadian Coast Guard and RCN fleets, while creating good middle-class jobs across the country and revitalizing Canada’s marine industry.

• The CSC project is the largest and most complex shipbuilding initiative in Canada since World War II.

• In support of Canada’s defence policy, Strong, Secure, Engaged, the Government of Canada committed to acquiring 15 CSC ships that will replace the Halifax-class frigates and the retired Iroquois-class destroyers. With these ships, the RCN will have modern and capable vessels to monitor and defend Canada’s waters, continue contributing to international naval operations for decades to come, and rapidly deploy capable naval forces worldwide.

• The amendment to the CSC definition contract with ISI will initiate enhancements to the shipyard’s infrastructure.

• These enhancements were identified during the design phase and from lessons learned during the construction of ships in the United Kingdom and Australia, which are also based on the same Type 26 model as the CSC.

• The start of construction activities on the CSC vessels is anticipated to begin in 2024, with full-rate production to begin under the implementation contract in 2025. Ship delivery is expected to begin in the early 2030s and be completed by 2050.

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