Province makes record loan to Irving for shipbuilding

The province is loaning the Irving Shipyard hundreds of millions of dollars to get things started ahead of the main work under the federal shipbuilding procurement strategy.

This is the largest single investment in the province’s history. The commitment was made months ago and only being announced today.

The province committed to a financial assistance package that includes a forgivable capital loan worth up to $260 million, and a repayable marine industry loan worth $44 million for human resource development, technology and industrial development. The province also committed to loan guarantees, if needed, as the contracts are finalized.

Irving Shipbuilding says it will spend between $5-10 million each year for the next 30 years on capital improvements to its operations. It says that’s over and above what the company is spending to build new infrastructure that’s needed to complete the project.

Premier Darrell Dexter made the announcement at the shipyard in Halifax, alongside Defense Minister Peter MacKay and Irving’s Jim Irving.

“I, the entire province, and indeed people from across Canada, have stood behind Irving’s bid from day one, knowing that the best ships in the world start right here,” said Dexter. “This is the single most important opportunity Nova Scotia has ever seen to create jobs and propel our economy into the future. This is a vital project for Nova Scotia and for Canada.”

“We appreciate the vision shown by the province and Premier Dexter in recognizing the significant impact the new federal shipbuilding contracts will have in Nova Scotia,” said Jim Irving, CEO of Irving Shipbuilding. “The province has consistently shown its commitment to the skilled men and women at Irving Shipbuilding.

Construction work will include:

  • Expansion of Existing Module Shop
  • Construction of two new paint shops
  • Construction new ultra hall
  • Construction land level transfer facility
  • New launch mechanism
  • Construction on Pier 8
  • Refurbishment of existing pier 6 and 7

** More to come.

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