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Galveston Today
By the People, for the People
Texas Backs Gulf Shipbuilder to Build Massive Arctic Icebreakers
Davie Defense Inc. awarded $21.8 million in state funding to expand operations in Galveston and Port Arthur.
Published on Feb. 16, 2026
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The state of Texas has awarded Davie Defense Inc., a subsidiary of Canadian shipbuilder Davie Shipbuilding, a $21.8 million grant to expand its operations in Galveston and Port Arthur. Davie will use the funding to build three Arctic icebreakers as part of a contract with the U.S. Coast Guard to manufacture a total of five such ships, with the remaining two being constructed in Finland.
Why it matters
This investment furthers the Gulf Coast's growing influence in military shipbuilding, as the region sees an expansion of shipbuilding capabilities across Texas, Louisiana, and Florida. The icebreakers are considered crucial for improving access to Greenland for security reasons, as the U.S. seeks to increase its military presence in the Arctic.
The details
Davie Defense Inc., a subsidiary of the Canadian shipbuilder Davie Shipbuilding, will use the $21.8 million Texas Enterprise Grant to expand its operations in Galveston and Port Arthur. The company will use these facilities to build three of the five Arctic icebreakers it has been contracted to manufacture for the U.S. Coast Guard, with the remaining two being constructed at Davie's facility in Helsinki, Finland.
- In June 2025, Davie announced plans to spend $1 billion to grow its operations in Galveston and Port Arthur.
- In November 2025, Gulf Copper announced an expansion of an agreement with Mississippi-based Ingalls Shipbuilding to build units for the U.S. Navy's Flight III Arleigh Burke-class destroyers.
- In January 2026, the first steps toward building a 400,000-square-foot shipbuilding center in Pensacola, Florida, were approved.
The players
Davie Defense Inc.
A subsidiary of Davie Shipbuilding, a Canadian shipbuilder owned by a British industrial group, that will be expanding its operations in Galveston and Port Arthur, Texas to build Arctic icebreakers for the U.S. Coast Guard.
Greg Abbott
The Governor of Texas, who announced the $21.8 million Texas Enterprise Grant awarded to Davie Defense Inc.
Kai Skvarla
The CEO of Davie Defense Inc., who praised Texas' "business-friendly" climate and shipbuilding scalability.
U.S. Coast Guard
The government agency that awarded Davie Defense Inc. a contract to manufacture five Arctic icebreakers, three of which will be built in Texas.
Donald Trump
The former U.S. President who directed the Coast Guard to increase the nation's military presence around Alaska and in parts of the Arctic, leading to the icebreaker contracts.
What they’re saying
“We can't wait to get started on delivering mission-ready cutters to our valued U.S. Coast Guard partner.”
— Kai Skvarla, CEO, Davie Defense Inc. (Press release)
What’s next
Davie Defense Inc. has not yet announced milestone dates for the icebreaker project, but the full $730 million investment is expected to create 2,400 new jobs in the region.
The takeaway
This investment in Gulf Coast shipbuilding capabilities, particularly for specialized Arctic icebreakers, highlights the region's growing importance in supporting the U.S. military's strategic priorities and presence in the Arctic, as the nation seeks to bolster its security and economic interests in the region.
