Canadian shipbuilder Davie Yards has become party to Canada’s National Shipbuilding Procurement Strategy for the federal fleet renewal program, despite media reports that that company is struggling to stay afloat.
‘HMCS Calgary’ at Canadian shipyard, Davie Yards (source: Davie Yards)
The Montreal Gazette reported that the company owes over CA$60 million (US$57.9 million) and requires a cash injection by September 15.
The current contract adds to the company’s order backlog.
Canada’s shipbuilding strategy unveiled in June is a CA$40 billion program to build approximately 50 ships to renew the Canadian Navy and Canadian Coast Guard fleets over the next 30 years.
The Canadian government announced that two shipyards will be selected for the procurement of large ships - one to build combat vessels, the other to build non-combat vessels.
“Davie is the only yard with the existing facilities to build the largest vessels such as the joint support ships for the navy and the large icebreakers for the coast guard”, said Mr. Gustav Johan Nydal, CEO of Davie Yards.
“The federal fleet renewal programme supports a promising future for Davie. We expect that this announcement will assist the company in its restructuring process by enhancing its attractiveness to potential new investors.”
‘HMCS Calgary’ at Canadian shipyard, Davie Yards (source: Davie Yards)
The Montreal Gazette reported that the company owes over CA$60 million (US$57.9 million) and requires a cash injection by September 15.
The current contract adds to the company’s order backlog.
Canada’s shipbuilding strategy unveiled in June is a CA$40 billion program to build approximately 50 ships to renew the Canadian Navy and Canadian Coast Guard fleets over the next 30 years.
The Canadian government announced that two shipyards will be selected for the procurement of large ships - one to build combat vessels, the other to build non-combat vessels.
“Davie is the only yard with the existing facilities to build the largest vessels such as the joint support ships for the navy and the large icebreakers for the coast guard”, said Mr. Gustav Johan Nydal, CEO of Davie Yards.
“The federal fleet renewal programme supports a promising future for Davie. We expect that this announcement will assist the company in its restructuring process by enhancing its attractiveness to potential new investors.”