Carney announces $11.3B for six new Coast Guard icebreakers to be built in Quebec
Prime Minister Mark Carney announced $11.3 billion in funding to build six new icebreakers for the Canadian Coast Guard, describing the contract as the "largest" shipbuilding deal in Quebec's history. The announcement was made alongside Quebec Premier Christine Fréchette at the Chantier Davie shipyard in Lévis, Que., where all six ships will be constructed.
The new vessels will replace the Coast Guard's aging heavy and medium icebreakers, fulfilling a promise made in 2019. Carney said the project will move quickly, with the first steel cut next fall, the first ship delivered five years later, and the full fleet in service five years after that. He noted the icebreakers will operate in Atlantic Canada, the St. Lawrence throughout the winter, and the Arctic during the summer.
The contract is expected to support 5,000 jobs during construction. Carney emphasized that the work extends beyond the shipyard, saying more than 1,500 suppliers from across Canada will contribute. He specifically mentioned Algoma Steel in Sault Ste. Marie, fabricators at Brannon Steel in Brampton, Ont., and steel specialists in Hamilton.
The vessels fall under the federal government's "Buy Canadian" procurement policy and will be built with Canadian steel and other domestic materials, according to Carney's office. A government news release said the project will create nearly 5,000 jobs in the construction phase alone and contribute nearly $650 million annually to Canada's GDP.
Fréchette, who is about to enter a provincial election campaign, called the announcement a great day for Lévis. She said the contract will protect the province's economic sovereignty and create good careers, such as welders and technicians.
The announcement comes just days after trade talks with the United States collapsed, and as President Donald Trump issues new tariff threats against Canadian industry.
In 2024, Ottawa announced an initial $19.6-million contract to Davie under the national shipbuilding strategy to design the six new Polar Class 3 icebreakers. The Coast Guard is undergoing a large fleet renewal, with the national shipbuilding strategy expected to oversee delivery of 88 new vessels in total by 2045.
Reaction from Sault Ste. Marie
Terry Sheehan, the Liberal MP for Sault Ste. Marie–Algoma, welcomed the announcement, highlighting its benefits for local steelworkers. "The collaboration between Algoma Steel and Davie exemplifies how our government's Buy Canadian policy and National Shipbuilding Strategy support communities," Sheehan said in a statement.
Sheehan said the contract "demonstrates what's possible when we build major national projects using Canadian steel and employ Canadian workers," adding that it supports good jobs in the Soo, strengthens domestic supply chains, and ensures Northern Ontario's industrial workforce expertise contributes to Canada's next generation of ships.
Laura Devoni, Algoma's vice-president of human resources and corporate affairs, called the news "definitely good news." She noted that Algoma Steel, Canada's only producer of discrete steel plate including plate for marine and shipbuilding applications, welcomes the announcement and continued investment in Canadian shipbuilding.