Canada awards $33B shipbuilding contracts

Oct. 19, 2011 at 5:45 PM
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OTTAWA, Oct. 19 (UPI) -- The Canadian government Wednesday said it was giving contracts totaling $33 billion to two shipbuilders for a fleet of vessels.

Halifax's Irving Shipbuilding will get $25 billion to build 21 combat ships. Vancouver's Seaspan Marine will be paid $8 billion for seven non-combat vessels.

Defense Minister Peter Mackay said the contracts will create upwards of 15,000 jobs across the country, the Canadian Broadcasting Corp. reported.

"Keep in mind this is about rebuilding our navy, our coast guard, the vessels that we will need well into the future," Mackay said. "It's going to be a huge injection into the economy. And it's going to be done in a way that is de-politicized and fair, and inclusive, for all regions."

Davie Shipyard in Levis, Quebec, also had bid on the naval projects. Though it lost out on the largest contracts, it can still bid on additional contracts worth $2 billion that the two winning firms will not be allowed to seek, the CBC said.

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