Ontario pumping CAD 215 million into its shipbuilding sector

Photo: Ontario Shipyards

The Ontario government is investing CAD 215 million (about USD 184 million) to support shipbuilding and the broader marine sector in the province, including through the establishment of a CAD 15 million Ontario Shipbuilding Grant Program (OSGP) to expand the province’s shipbuilding sector.

The support provided through the grant program will position Ontario to support Canada’s National Shipbuilding Strategy and support Ontario manufacturing businesses and workers in the face of U.S. tariffs and economic uncertainty. It will fund projects that support skills training, infrastructure improvements and the purchase of machinery and equipment in the shipbuilding sector.

“With our NATO allies meeting this week, Ontario workers are ready to step up and build the ships that will protect Ontario and Canada,” said Ontario’s Minister of Transportation, Prabmeet Sarkaria, “As the federal government increases its defense commitment to meet our NATO spending targets, our government is ensuring Ontario workers and businesses have the skills and equipment they need to help. Now, it’s up to the federal government to ensure Ontario shipbuilders are included in its National Shipbuilding Strategy.”

The first-of-its-kind in grant program will provide shipbuilders access to non-repayable grants for up to 50% of eligible costs for projects that support the shipbuilding industry’s competitiveness, business growth and long-term capacity. Applications will open in late July through Transfer Payment Ontario. More information on the program can be accessed through Ontario’s funding opportunities webpage.

The provincial government says that the province’s crucial role as Canada’s economic and manufacturing engine and the capabilities of its workforce can help meet the federal government’s shipbuilding procurement needs.

This week’s investment is intended to strengthen the shipbuilding workforce by allowing workers to upskill and stay up to date with emerging technologies and industry standards. This will enhance the province’s economic competitiveness and development throughout the province, including in northern Ontario, which is key to unlocking potential in the shipbuilding industry.

“On behalf of Ontario Shipyards, I want to thank Minister Sarkaria, Premier Ford, and the entire Ontario government for their investment of $215 million into the shipbuilding and marine sector,” said Shaun Padulo, president and CEO of Ontario Shipyards, the former Heddle Shipyards, and the largest Canadian shipyard group on the Great Lakes. “At a time when industrial jobs are under pressure across North America, Ontario has taken bold, strategic action to support a growing sector critical to our economy and national security—one that directly contributes to Canada’s commitment to meeting the 2 per cent NATO defense spending target.”