Gov. Greg Abbott announced that Davie Defense Inc. will expand shipbuilding operations in Galveston and Port Arthur, investing more than $730 million and creating over 2,400 jobs. The state awarded the company a $21.7 million Texas Enterprise Fund grant to support the project, which will focus on building Arctic icebreakers and other specialized vessels.
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Governor Greg Abbott announced on Wednesday that Davie Defense Inc. plans to expand its shipbuilding operations in Galveston and Port Arthur. This expansion is expected to generate over 2,400 jobs and inject more than $730 million into the Texas economy.
The project is receiving important backing from the state, which has allocated a grant of $21,771,000 from the Texas Enterprise Fund, according to a statement from Abbott’s office.
The upcoming expansion is set to prioritize the construction of Arctic icebreakers and various specialized vessels intended for both theboth U.S. government and commercial clients. Officials from the company announced that the facilities in Texas will function as a central hub aimed at revitalizing the nation's shipbuilding capacity.
“Texas boasts the best business climate in the nation, positioning the state as a magnet for complex and critical manufacturing,” Abbott stated in a recent announcement. The investment is expected to generate thousands of well-paying jobs, enhance national defense, and increase U.S. shipbuilding capacity, according to statements made by officials.
Davie Defense has announced plans to center its U.S. growth strategy around its Texas operations, highlighting the state's workforce, port infrastructure, and industrial base as key factors in this decision. The initiative seeks to enhance the shipbuilding capacity in the United States, coinciding with federal officials' calls for the modernization of maritime fleets, which includes the development of vessels equipped for Arctic conditions.
Icebreakers are crucial for ensuring access to Arctic shipping routes and bolstering national security operations in polar regions. In response to escalating global competition in the Arctic, federal officials are placing a greater emphasis on the expansion of the U.S. fleet.
The Texas Enterprise Fund grant operates on a performance-based model, linking its disbursement to specific benchmarks related to job creation and capital investment. The fund serves as a key instrument for the state in its efforts to draw in significant employers and facilitate large-scale industrial initiatives.
The expansion is set to create new manufacturing and skilled trade jobs in both coastal communities. Galveston and Port Arthur maintain a rich history in maritime commerce and shipbuilding, bolstered by their deepwater ports and close proximity to the Gulf of Mexico.
Davie Defense has announced that its latest investment aims to enhance American manufacturing, promote reindustrialization, and bolster warfighting readiness by constructing complex vessels for both government and commercial clients.
State officials have yet to provide a timeline for construction or hiring, but they have indicated that further details will be disclosed as the project progresses.
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