Galveston, Texas — Davie Defense has begun a major modernization program at Gulf Copper’s shipyard facilities in Galveston and Port Arthur, Texas. The project could reach $1 billion and is aimed at strengthening U.S. shipbuilding capacity while supporting future U.S. Coast Guard Arctic icebreaker construction.

The groundbreaking is a key step for the Arctic Security Cutter program. It also marks the return of complex shipbuilding activity to Texas after decades of limited involvement in that sector.

The first phase of the upgrade is scheduled for completion in 2028. That timeline aligns with the planned start of construction in Texas for the first of three Arctic Security Cutters assigned to the facilities. Under Davie Defense’s $3.5 billion contract with the Coast Guard, the first two vessels will be built at Helsinki Shipyard in Finland before production shifts to Texas.

The ceremony was attended by senior federal and state officials, including Office of Management and Budget Director Russell Vought, Texas Governor Greg Abbott, Senator Ted Cruz, Congressman Randy Weber, Department of Homeland Security Deputy Secretary Troy Edgar, and Coast Guard Commandant Admiral Kevin Lunday.

The expansion is expected to create about 2,400 direct jobs. An independent economic study also projects up to 7,000 jobs across Texas through supply-chain activity and wider economic impacts.

Philip Burns-O’Brien, President and CEO of Davie Defense and Gulf Copper, said the investment supports a broader effort to rebuild U.S. industrial capability as strategic competition grows. The company has positioned the Texas facilities as the center of an “American Icebreaker Factory,” supported by expertise from Helsinki Shipyard, one of the world’s leading polar icebreaker builders.

The investment comes as the Coast Guard works to expand its limited icebreaking fleet, which includes the aging heavy icebreaker Polar Star, medium icebreaker Healy, and recently commissioned Storis.

Davie Defense secured a $3.5 billion contract earlier this year to build five Arctic Security Cutters as part of the Coast Guard’s planned 11-vessel program. The first vessel is expected to be delivered in 2028.

The project also aligns with U.S. policy efforts to revive domestic shipbuilding and with the ICE Pact framework involving the United States, Canada, and Finland to expand Western icebreaker production.

In addition to future icebreaker construction, Gulf Copper continues restoration work on the historic battleship Texas, which appeared during the groundbreaking event.

The Texas investment strengthens the state’s role in U.S. shipbuilding as Washington seeks to rebuild industrial capacity and address the widening shipbuilding gap with China.