Davie Defense to Spend $730M to Expand Shipbuilding

Davie Defense Inc. and the Texas governor’s office announced February 11 that Davie would expand its shipbuilding operations in Galveston and Port Arthur, Texas. The project is expected to create 2,400 new jobs at the shipyards for building Arctic icebreakers.

The announcement comes a day after Davie Defense announced it had received a contract from the United States Coast Guard to build five Arctic Security Cutters designed for polar icebreaking. In a company release, Davie said it would build three of the icebreakers in the United States and two more in its Helsinki, Finland shipyard to meet its 2028 deadline.

To support the investment, the governor’s office said it had granted Davie $21 million from a Texas Enterprise Fund. Port Arthur Mayor Charlotte Moses said the funds will go towards “new opportunities” and economic growth for the city.

In a company statement, Davie Defense CEO Kai Skvarla praised Texas’ support and emphasized the intended longevity of the site.

“Davie Defense is proud to deepen our commitment to Texas,” Skvarla said. “Texas has one of the world’s most business-friendly environments and the scale to support complex shipbuilding — a capability we’re bringing back to Texas for the first time in generations. Our investment will serve American industry and the U.S. government for decades to come — starting with Davie’s globally recognized specialty: the polar-capable icebreakers critical to U.S. national security.”

In a joint statement, Gov. Greg Abbott lauded his state’s ability to attract manufacturing investment and noted the importance of icebreakers to the United States.

“This significant capital investment by Davie Defense will expand economic opportunity in Galveston and Port Arthur and create thousands of good-paying jobs and further bolster national defense by expanding capacity for the manufacture of icebreakers and other specialized vessels for the U.S. government and commercial customers. Texas is positioned to be a national hub for critical shipbuilding and, with our strong workforce, we will be for generations to come,” Abbott said.