Irving Shipbuilding awarded multi-billion-dollar contract to build new fleet of warships

A River-class destroyer is pictured in an undated photo. (Source: Government of Canada)

Halifax-based Irving Shipbuilding Inc. has been awarded a contract to build a new fleet of warships.

The Government of Canada said the cost to build and deliver the first three ships is estimated at $22.2 billion excluding taxes.

It said the estimate includes the costs which will be paid to Irving through the implementation contract, as well as costs associated with the delivery of equipment, systems, and ammunition which Canada will acquire to bring the first three ships to service.

“By investing in our own industry, Canadian workers are helping to build the fleet of the future, equipping the Navy and our members in uniform modern and versatile ships they need for Canada’s important contributions to peace and security at home, and abroad,” said National Defence Minister Bill Blair.

“This work will create more than 5,000 jobs in Halifax and across Canada, supporting local economies from coast to coast to coast.”

The River-class destroyers (RCD) are being built through Canada’s new defence policy Our North, Strong and Free (ONSAF). The government said the warships will provide decisive combat power for operations at sea, as well as supporting missions conducted as part of counter-piracy, counterterrorism, intelligence and surveillance, interdiction and embargo, humanitarian assistance, research and rescue, and enforcement of law or sovereignty.

“These impressive ships will offer an incredible capacity to the Royal Canadian Navy and Canada, ensuring that we can defend our waters against any adversary and deliver frontline combat power anywhere in the world,” said Vice-Admiral Angus Topshee, Royal Canadian Navy Commander.

According to the government, the Department of National Defence (DND) is building a land-based testing facility on a portion of DND-owned land in Halifax to help bring the ships into service and support them throughout their lifecycle. Construction is expected to begin this summer with expected completion in 2027.

“This generational investment in our future fleet will create good jobs at the shipyard and launch a new wave of opportunities in the maritime defence sector – growing our economy,” said Veterans Affairs Minister and Dartmouth-Cole Harbour MP Darren Fisher.

“Every shipbuilder and worker on this project will take pride in knowing their craftsmanship directly supports the brave women and men of the Royal Canadian Navy as they serve at home and abroad.”

The first three ships will be named His Majesty’s Canadian Ships Fraser, Saint-Laurent, and Mackenzie. The initial construction contract is for a period of six years, with an extension to follow as the ships are completed.

“Today is a major milestone for Irving Shipbuilding and for Canada. This contract validates more than a decade of hard work by industry and government and provides stability for the hard-working men and women who design, build and maintain Canada’s surface fleet,” said Irving Shipbuilding Inc. President Dirk Lesko.

Unifor applauded the contract Saturday calling it the largest and most significant “Buy Canadian” procurement program, and largest shipbuilding effort since the Second World War.

“There is perhaps no moment more significant than the one we’re in right now to prove the value and importance of domestic procurement,” said Unifor National President Lana Payne.

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