American shipbuilder Davie Defense has broken ground on a $1 billion modernization project at its facilities in Galveston and Port Arthur, marking Texas’ first complex shipbuilding project in decades.
The project will upgrade shipyards Davie acquired from Gulf Copper last year to build Arctic Security Cutters, icebreaker ships designed to move through harsh, icy waters and support U.S. Coast Guard operations in the Arctic.
Supported by a $21.8 million Texas Enterprise Fund grant, the project is projected to create 2,400 jobs and support nearly 7,000 jobs statewide through broader economic activity.
“Texas is ground zero for the revitalization of the American shipbuilding industry,” said Governor Greg Abbott in a press release. “Davie Defense’s significant investment in this expanded shipbuilding facility will bring more advanced defense manufacturing to our great state, create thousands of good-paying jobs, and enhance America’s maritime security.”
Building the Coast Guard’s Next Icebreakers
The announcement comes after the U.S. Coast Guard finalized a $3.5 billion contract for Davie to construct and supply five icebreakers. The first two icebreakers will be built at Davie’s affiliate Helsinki Shipyard in Finland. The remaining three are planned for the Galveston and Port Arthur facilities.
“Gulf Copper is more than a facility investment, it is part of the broader vision to revive U.S. shipbuilding capacity as strategic competition increases,” said Philip Burns-O’Brien, President & CEO, Davie Defense & Gulf Copper. “Texas has the industrial foundation, talent and ambition to lead this renaissance.”
Why the Houston Region?
The first phase of the project is expected to be completed in 2028, adding investment in advanced manufacturing and industrial production to the already existing industries along the Texas Gulf Coast.
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The Houston region has long supported large-scale industrial work across energy, logistics and maritime operations. As Davie expands shipbuilding capacity in Texas, that industrial expertise — along with the region’s maritime workforce — positions Houston to support the return of advanced shipbuilding in the U.S.
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