Davie Defense Expands in U.S. Market with Acquisition of Gulf Copper

The newly minted Davie Defense, a division of Inocea Group and aligned with Canadian shipbuilder Davie, completed its acquisition of Gulf Copper & Manufacturing Corporation's shipbuilding assets in Galveston and Port Arthur, Texas. The deal was first announced in June, with the launch of Davie Defense announced in September, as the group looks to leverage its expertise to gain a foothold in U.S. defense shipbuilding and specifically the Polar Icebreaker programs.

Gulf Cooper has been operating for 75 years along the U.S. Gulf Coast and reports it has two dry docks in each of the locations and 4,000 feet of dock in Galveston and 1,000 feet in Port Arthur. It has been focused of late on ship repair, offshore services, and marine infrastructure. It serves the oil and gas, marine transport, petrochemical, and government sectors. Davie highlights that the yard recently expanded scope on the Flight III Arleigh Burke–class destroyer units. It has approximately 350 employees currently.

The group reports that Gulf Copper will continue to operate as a leading repair and fabrication center, backed by its experienced management team and workforce, who will remain in place. Kai Skvarla, CEO of Davie Defense, will assume the role of CEO of Gulf Copper, with current CEO Steve Hale staying on in an advisory role to ensure a smooth transition.

"Closing this acquisition is a defining moment in our Group's journey,” said James Davies, Co-Founder, Inocea Group, a privately held British marine industrial group with operations spanning the United States, Canada, and Finland. “We are now truly transatlantic, and we are proud to welcome the Gulf Copper team as part of our U.S. presence.”

The company is seeking to leverage the expertise of Davie Group in Canada, which is one of the builders for Canada’s new large Polar icebreakers. In addition, Davie acquired Helsinki Shipyard in Finland as well as other assets. In September, it outlined its plans to invest in Gulf Cooper to create what it called an "icebreaker factory." Davie had said once it secures contacts that it plans to invest $1 billion to upgrade and expand capacity in Galveston and Port Arthur. The project it said could generate approximately 4,000 American jobs, with 2,000 directly at Gulf Copper.

Rendering of the proposed "icebreaker factory" at Gulf & Cooper's yard (Davie Defense)

Polar icebreakers are becoming increasingly significant in the planning of both the United States and Canada. On October 9, the presidents of the U.S. and Finland signed a Memorandum of Understanding on icebreaker construction that was a follow-up to the trilateral initiative first announced in July 2024 between the U.S., Canada, and Finland to advance shipbuilding and Arctic defense collaboration under the Icebreaker Collaboration Effort (ICE Pact).

As a principal industrial partner in the ICE Pact, Davie Defense says it looks forward to the upcoming contracting process and to working with the U.S. Coast Guard to determine how best to advance the Arctic Security Cutter (ASC) project in America. Davie Defense is in negotiations to deliver five ASCs.

The ASC is based on a fourth-generation polar icebreaker design from Helsinki Shipyard, which is billed as the world's premier icebreaker builder. The Finnish yard has delivered approximately half of the world fleet and all the polar icebreakers built in Finland over the past 25 years.

The October memorandum between the U.S. and Finland calls for the construction of a total of up to 11 icebreakers using Finnish designs and expertise. The value of the deal was reported at approximately $6.1 billion, with media reports saying four of the vessels will be built in Finland, and in a second phase, Davie’s U.S. yard and Bollinger would build the additional vessels using the Finnish designs and expertise.

Davie follows other major shipbuilders that are positioning for the anticipated expanded U.S. shipbuilding proposed by the Trump administration. Austal has moved to increase its facilities, while South Korea’s Hanwha Ocean purchased the Philly Shipyard. HD Hyundai is also reported to be exploring possible U.S. acquisitions while also forming partnerships in the U.S. It is all part of the highly anticipated revival of the American shipbuilding industry.