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Canada to invest over $11 billion in shipbuilding program

The Government of Canada intends to invest over $11 billion to build six new program icebreakers for the Canadian Coast Guard in partnership with Chantier Davie Canada Inc., its long-term strategic partner, according to the press release published on the official website of the Canadian Prime Minister Mark Carney. All six ships will be built at the Davie Shipyard in Lévis, Québec, which marks the largest shipbuilding contract in the province’s history.

Under the government’s Buy Canadian Policy, the vessels will be built with Canadian steel and other domestic materials. The endeavor is expected to create nearly 5,000 jobs in the construction phase alone and bring around $650 million annually to Canada’s GDP.

The new program icebreakers will replace the Coast Guard’s current ships that operate in Atlantic Canada and the St. Lawrence through winter, and in the Arctic through the summer.

According to the press release, the project “secures Canada’s position as the home of NATO’s largest icebreaking fleet, bolsters national security in the North, and protects Canadian interests.”

Construction will begin in 2027, with the first ship ready five years later. The full fleet is expected to be in service by 2038.

Chantier Davie Canada Inc. has been working for the Canadian Coast Guard and the Royal Canadian Navy since 2012. The procurement of six new program icebreakers was initially announced in 2019, and in 2024, the government awarded Chantied Davie a $19.6-million contract to start design work for the vessels. Later, in 2025, the government awarded the shipbuilder another contract to construct the Polar Max, which is reported to be “one of the most powerful and capable heavy icebreakers in the world.”

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