Babcock International, the Britain-based parent company of Babcock Canada, said the two firms will initially focus on work for the Canadian Coast Guard.
The teaming agreement is for a period of five years.
"This is a significant milestone in Babcock's strategy for expanding its programs within Canada and we look forward to working with Davie to develop that goal and to demonstrate our collective capabilities to the wider stakeholder community," said Babcock Canada President Mark Dixon.
Added Alan Bowen, chief executive officer of Chantier Davie: "We have spent significant time with Babcock over the past six months developing a strategy which will culminate in a series of value propositions for the (Canadian) federal government."
Chantier Davie is the largest and highest capacity shipyard in Canada. It will provide shipbuilding, repair facilities and related expertise for the joint venture, while Babcock will provide marine engineering expertise and experience in managing federal government contracts.
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