September 18, 2009
Irving and Davie propose plan for Canadian shipbuilding
Canada's Irving Shipbuilding Inc. and Davie Yards Inc. (TSX:DAV) are proposing that the Canadian federal government implement a national shipbuilding procurement strategy based on "Centers of Excellence."
Essentially, if accepted, the proposal would see major federally funded shipbuilding projects divided between the two.
The two companies have agreed to cooperate by sharing technology, facilities, and capabilities as "dedicated Centers of Excellence for Major Crown Projects involving an allocation model."
Their proposal is a response to a federal government request for proposals following Canada's recent national shipbuilding forum.
Cutting through the verbiage in the press releases issued by the two, what they seem to be looking for is for Irving to emerge as the Center of Excellence for combat ships and Dave to be the equivalent for federally-ordered non-combat ships.
Major Crown Projects of the fleet renewal program would be allocated to one or other of these Centres of Excellence based on the technology required and the nature of the projects. Under such an allocation, one of the Centers of Excellence should focus on building combat ships and the other on building commercial type ships without heavy combat equipment and on developing Canadian expertise on heavy ice class ships.
Smaller yards would be allocated contracts for the smaller and less complex ships in the program.
The Irving press release is HERE
The Davie release is HERE