Halifax Shipyard Modernization in Full Swing

Irving Shipbuilding today announced $28.2 million in additional contract awards to Canadian-based suppliers as part of the Halifax Shipyard Modernization Program, a 2-year engineering and construction investment to prepare the company’s facilities to build Canada’s future combatant ships.

“To date a total value of $175M in contracts have been awarded as part of our overall investment of approximately $300M in the Halifax Shipyard Modernization Program” said Kevin McCoy, President, Irving Shipbuilding. “The work underway at our yard is focused on getting us ready to undertake production of the AOPS vessels scheduled to start in 2015, as well as the larger combatant ships scheduled to begin production in 2020. With so many significant changes underway, it is a constant reminder that 2015 is not far away and we’ll be building Navy ships at Halifax Shipyard very soon.”

Of the contracts let to date, 82% of the total contract value has been awarded to Canadian companies, while 52% of total contract value has been awarded to companies owned or operating in Nova Scotia.

Omega Formwork Inc. was awarded a contract to work on the concrete foundations and floor slabs for the new production facility at Halifax Shipyard. Other Nova Scotia owned or operating companies in this most recent round of contract awards include Harris Rebar, Dartmouth, and Dexter Construction, Pipe & Piling, Black & MacDonald, and Eastern Fence, all of Halifax.

Bermingham Foundation Solutions, based in Hamilton, Ontario and a subcontractor under Gulf Operators, was awarded a contract to provide Canadian-built custom engineered marine dockwall construction equipment. Other Canadian companies in this most recent round of contract awards include Skyline Steel, St. Bruno, QC; as well as Gulf Operators’ subcontractor Con-Tech Systems Ltd., headquartered near Vancouver, BC.

The demolition of the yard’s joiner shop, burning shop and entire backend of the 100-year-old Module shop, the yard’s primary production facility, has been completed. The cleared areas will continue to be prepared for construction.

The remaining demolition of the production facilities is scheduled for early in 2014 once the inside work on the Mid-Shore Patrol Vessels for the Coast Guard is completed. Seven cribs for the land level facility in the North end of the yard have been installed in the harbor and infilling has commenced.

Demolition and replacement of the barrier wall and fence along Barrington Street and the repair of the lower wall continues and is expected to be complete by year-end.

“The economic impacts, such as the jobs in shipbuilding, engineering, planning and supply chain, will scale up with the preparation and start of production on AOPS in 2015 while the indirect jobs within our supply chain and our suppliers’ supply chains will follow,” noted Kevin McCoy. “However, the employment that comes with the transformation and construction of North America’s most modern shipyard – that has started now. In fact, we project we’ll peak at approximately 500 construction jobs on Halifax Shipyard’s site in 2014.”

The contracts associated with the Halifax Shipyard Modernization Program awarded to date have created more than 1,600 full time equivalent (FTE) positions directly within our selected suppliers and indirectly within those suppliers’ subcontractors and $100 million in annual employment income over the two-year program period across Canada.

The total $300 million Yard Modernization investment is expected to boost Canadian gross domestic product (GDP) by $235 million, create more than 2,800 full time equivalent (FTE) positions across Canada (direct with our suppliers and indirect with their subcontractors) and generate $170 million worth of employment income in the country over the two-year period.

It will also lead to more than $127 million worth of consumer spending. In addition, the economic activity is expected to provide approximately $58 million worth of taxes for federal, provincial and local governments over the two year period.

“Throughout the NSPS contracts, as well as the preparations leading up to them, we are committed to maximizing opportunities and benefits for Canadians and Nova Scotians through subcontracting, employment and the generation of investment and benefits within the broader marine industry,” added Kevin McCoy.

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Press Release, December 11, 2013