Updates on exciting news, developments, and current projects of Irving Shipbuilding Inc. Thank you for staying tuned! 

Shipbuilding Update

March 7, 2013

Since our last update on December 7, 2012 we wanted to keep you informed on recent and upcoming activities regarding Irving Shipbuilding.

Irving Shipbuilding Moves Forward with Detailed AOPS Design, Preparing for Construction in 2015

Halifax, NS, March 7, 2013:  Irving Shipbuilding welcomed the Honourable Rona Ambrose, Minister of Public Works and Government Services Canada, and the Honourable Peter MacKay, Minister of National Defence to Halifax Shipyard today to mark the start of the Definition (Design) phase of work for the first set of new naval combat vessels for Canada, the Arctic Offshore Patrol Ships (AOPS).

Under the Definition Contract Irving Shipbuilding will refine and complete the AOPS vessel design to the high degree of detail for Canada and for those who will cut steel, assemble, complete and test the ships, as well as complete various phases of design review, analysis and testing, plan how to integrate all of the complex systems and equipment on the ship, and do detailed cost estimates for the build phase of the project; all tasks required in order to be ready to start the build of the AOPS vessels in 2015 and to meet Canada’s specifications.

“Our focus over the next 30 months is on producing a detailed ship design that delivers best value to Canada, while ensuring we meet the government’s 2015 deadline to cut steel for the first ship – this is vital to our customer, our current workforce and their families,” said Ross Langley, Vice Chairman of Irving Shipbuilding.

The Definition Contract will be managed by a team of highly-skilled, well paid professional positions located in Halifax, developing combat shipbuilding design and planning capacity and experience in Nova Scotia.  This team will manage the many specialist subcontractors and material suppliers, as well as the integration of the various complex systems that make up each ship. Recruitment for this team of engineers, supply chain leaders, program managers and technical specialists has been underway for some time now.  It is anticipated this team will reach a peak of 90 professionals in the Spring of 2014.

Completion of a test production module to verify design, engineering and systems integration plans will allow for more efficient production of the ships and employ an estimated 110 additional workers, bringing the Irving Shipbuilding AOPS team to 200.  Eighty percent of the high-value jobs associated with the AOPS design contract will be in Canada (including Tier 1 suppliers).

As Canada’s Prime Contractor for the AOPS project, Irving Shipbuilding has selected a team of exceptional, experienced subcontractors to fulfill the mandate of the design phase including Lockheed Martin Canada as Command and Surveillance Systems Integrator, GE Canada as Integrated Propulsion System Integrator, Lloyd’s Register Group as Classification Society, Odense Maritime Technology (OMT) as Marine Engineering and Naval Architecture Provider, and Fleetway Inc. as Integrated Logistics Support Provider.  Together these companies employ almost 8,000 people across Canada, and an estimated 75 professionals from these suppliers will be dedicated to the AOPS project. These 75 jobs are in addition to the forecasted 200 jobs the definition contract will sustain at Irving Shipbuilding. Both Lockheed Martin Canada and Fleetway Inc. have significant operations in Halifax.

The signing of the AOPS Definition Contract allows contracts to be finalized with these individual organizations and work to begin on the competition and selection of the subsequent subcontractors and businesses required to fulfill the mandate of the AOPS design phase.

“Together with our experienced partners, we are committed to maximizing opportunities and benefits for Canadians and Nova Scotians through additional subcontracting, employment and the generation of investment and benefits within the broader marine industry,” said Langley.  “We will be looking for qualified Canadian suppliers of goods and services that deliver best value to Canada while meeting the schedule established by the customer.  Every dollar we must spend outside of our country will be offset, dollar for dollar, with equal value inside Canadian borders.”

Canada’s Industrial and Regional Benefit (IRB) Policy ensures that Irving Shipbuilding will deliver business activities in Canada at 100% of the value of the contract.  IRB’s can occur inside and outside the shipbuilding sector, benefitting innovation, research and business development here in Nova Scotia and across Canada.

Long term yard infrastructure investments - estimated to be about $300 million - are already underway and are designed to ensure Halifax Shipyard is ready to undertake production when cut steel is scheduled for the AOPS vessels in 2015, as well as the larger combatant ship contract currently scheduled to begin production in 2020. The build phase for each of these projects is where the bulk of the direct employment generation is anticipated. Infrastructure plans to efficiently meet the needs of the national shipbuilding program have been reviewed by 3rd party international experts First Marine International (FMI).

“We expect to be contracting key elements of the site upgrade within the next 3-6 weeks,” said Langley.  “This is a project that will result in significant work for local contractors.”

“Our proven history of successfully building Canada’s frigates, Maritime Coastal Defence Vessels, and Mid-Shore Patrol Vessels on time and within budget, combined with the combatant vessel projects in the shipyard today and now AOPS, have and continue to demonstrate our capability as the most qualified Prime Contractor of the larger CSC ships. We recognize our responsibility along this 30-year program to generate opportunities for shipbuilding trades, suppliers, marine professionals and knowledge building partners in Nova Scotia and across Canada,” concluded Langley.  “We are determined to deliver on that commitment.”

Read the Government of Canada's [press release and backgrounder].

By the numbers...

  • $288M Estimated value of total Definition Contract – 7 tasks in total
  • $135M Value of tasks #1 and #2
  • 80% The percentage of Canadian jobs estimated from the $288M contract
  • 100% The percentage of the Contract Value that must benefit Canada, in the form of Canadian content or through additional investment in Canada

The Atlantic Canada Opportunities Agency (ACOA), in cooperation with Lockheed Martin Canada, is hosting industry days on the following dates:

  • March 12 - Saint John, NB - Delta Hotel
  • March 13 - Halifax, NS - World Trade and Convention Center
  • March 15 St. John's, NL - Marine Institute

“Lockheed Martin is the combat systems integrator for the HALIFAX Class modernization program and we’re proud to have more than 250 employees located in Atlantic Canada,” said Don McClure, VP of Business Development.  “We’re equally proud of our record in developing industrial partnerships with Atlantic Canadian companies.  We’re looking forward to working with ACOA at the upcoming industry forums to indentify companies we can incorporate into our technical solution for upcoming Canadian programs as well as add to our global supplier list.”

For further information, contact Kaitlin Russell, at 613-410-6186 or by e-mail (kaitlin.russell@acoa-apeca.gc.ca)

Hero Class Corporal Teather C.V. Mid-Shore Patrol Vessel Delivered
On February 6, 2013, Irving Shipbuilding delivered the latest addition to the Canadian Coast Guard (CCG) fleet. The CCGS Corporal Teather C.V. (Cross of Valour) is the third of nine new 'Hero' Class Mid-Shore Patrol Vessels that are being built by Irving Shipbuilding for service across Canada. The 'Hero' class vessels are named after Canadian heroes who have given the ultimate sacrifice for Canada.
CCGS Corporal Teather C.V., after Corporal Robert Gordon Teather, C.V., a member of the Royal Canadian Mounted Police diving team in Surrey, British Columbia. Corporal Teather rescued two fishers trapped in the hull of their capsized boat. This heroic rescue occurred in the early morning hours of September 26, 1981. Corporal Teather passed away November 14, 2004. For his actions Corporal Teather was awarded the Cross of Valour.
Next Confirmed Project for Shelburne Ship Repair

Irving Shipbuilding recently confirmed a new contract for Shelburne Ship Repair. Atlantic Towing Limited's Atlantic Spruce Z-Drive Reverse Tractor Tug is due to arrive in Shelburne mid-March for painting of the hull, overhaul of sea valves, checking of the propulsion thrusters and propellers and maintenance work on the switchboard and power distribution system. The work is expected to take two to three weeks and employ 25 people. Atlantic Towing Limited has a fleet of modern Z-drive tugs, all Canadian-built by Irving Shipbuilding and Shelburne Ship Repair is proud ensure they remain in peak condition.

Irving Shipbuilding is currently seeking experienced staff for our supply chain department. Positions include: Subcontracts Manager, Supply Chain Lead and Buyers.

For more information on these and other current openings, visit www.irvingshipbuilding.com/careers

Click for previous update from December 7, 2012
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