(Ottawa) Having the assurance of building ships for the federal government does not change the world, except that… The Davie shipyard got a glimpse of it during its visit to the annual meeting of the defense sector, in the federal capital – where its acquisition project in Finland was also discussed.
“It’s a completely different situation,” said Davie Director, External Affairs and Industrial Participation, Marcel Poulin, in an interview with La Presse. “Before, what we were talking about was developing a business relationship for potential contracts. Now, the contracts will come and we can concretize these business relationships. »
The Lévis shipyard is a regular at CANSEC, the defense industry high mass held earlier this week. Incorporated into the National Shipbuilding Strategy (NSCS) last April, the company is negotiating the potential construction of seven new icebreakers for the Canadian Coast Guard – potential contracts worth $8.5 billion. She has not gone unnoticed in Ottawa this year.
Mr. Poulin was quick to notice.
CANSEC does not only bring together manufacturers of military equipment such as helicopters, vehicles and fighter planes. There are also cybersecurity specialists, manufacturers of radars, sensors and other technological solutions that can, for example, be found on an icebreaker. These are the companies that have an interest in getting closer to the Davie shipyard.
Identified as SNCN’s third supplier on April 4, the company is continuing its negotiations with the Canadian Coast Guard to finalize the contract for the construction of the first icebreaker. We are talking about “a matter of months” to conclude this round of talks, according to Mr. Poulin.
It provides for the construction of about fifty ships for the Royal Canadian Navy and the Coast Guard. We are talking about nine types of large ships, including combat ships. In the case of Davie, it will be the construction of six icebreakers and a polar icebreaker. The Seaspan (Vancouver) and Irving (Halifax) shipyards were the only two partners retained in 2011. The Lévis shipyard has just been integrated. Ottawa must now negotiate with Davie to complete the negotiations and establish a delivery schedule.
Building new ships for the federal government is expected to take up 70% of the shipbuilding capacity at Davie. Despite all the work that will result from the SNCN, the shipyard will be able to carry out other contracts. This is also the message that Davie wishes to convey in the context of these meetings.
This past week has also been an opportunity for the shipyard to reflect on its international ambitions. The Ottawa meeting was the scene of a meeting with the Finnish ambassador to Canada, Roy Eriksson, explained Mr. Poulin, without venting the content of the exchanges between the two parties.
“The proposed acquisition is still on the table,” says Poulin. We are in due diligence. We have exclusive business development in Finland to find work over the next few years. There is nothing officially purchased. »
If completed, this transaction would position Davie as a leader in the construction of icebreakers on an international scale. The challenge for the company, owned by European investors Alex Vicefield and James Davies, is to determine whether it can find new opportunities within the NATO alliance for Helsinki Shipyard Oy.
La Presse reported on March 28 that the Legault government is following this case closely. To allow Davie access to SNCN, Quebec agreed to release 520 million to allow the shipyard to modernize its facilities. The bill for this project is estimated at 840 million.