Davie Defense broke ground Monday on a major modernization of Gulf Copper shipbuilding facilities in Galveston and Port Arthur, with company officials and elected leaders billing it as a revival of complex shipbuilding capacity on the Texas Gulf Coast.

The investment, which could reach $1 billion, will position the shipyards to build Arctic Security Cutters (ASC) for the U.S. Coast Guard. In May 2026, the Coast Guard finalized a $3.5 billion contract with Davie Defense for five of the new icebreakers, with all five to be delivered by February 2035. Two will be built at the Davie-affiliated Helsinki Shipyard in Finland and three at the Gulf Copper facilities.

The first phase of the shipyard upgrade is scheduled for completion in 2028, coinciding with the start of Gulf Copper's first ASC. Helsinki Shipyard will build the initial two vessels, with the first expected for delivery that same year.

According to a 2025 independent economic study by Austin-based Impact Data Source, the Gulf Copper project is expected to generate approximately 2,400 direct American jobs, with broader statewide economic activity estimated to support up to 7,000 jobs through supply chain and related industries.

Additional details on the modernization effort were not immediately available.

Davie Defense is building five of the U.S. Coast Guard's new Arctic Security Cutters — two in Finland and three in the U.S. — under a $3.5 billion contract. Davie Defense image.

The groundbreaking ceremony drew company leadership alongside senior federal and state officials, including OMB Director Russell Vought, Sens. Ted Cruz and John Cornyn, Rep. Randy Weber, Gov. Greg Abbott, Homeland Security Deputy Secretary Troy Edgar, and Coast Guard Commandant Adm. Kevin Lunday.

"America cannot restore maritime strength without rebuilding its industrial capability," said Philip Burns-O'Brien, president and CEO of Davie Defense and Gulf Copper. "Gulf Copper is more than a facility investment; it is part of the broader vision to revive U.S. shipbuilding capacity as strategic competition increases. Texas has the industrial foundation, talent, and ambition to lead this renaissance."

Davie Defense is a U.S. shipbuilder and part of Inocea, a British-owned marine industrial group with operations in the United States, Canada, and Finland. Co-founder and CEO James Davies said the project reflects a broader mission to restore Western shipbuilding capacity. Davie Defense completed the acquisition of Gulf Copper's shipbuilding assets in December 2025, following all required U.S. government approvals including clearance from the Committee on Foreign Investment in the United States (CFIUS). Davie had first announced the acquisition in June 2025.

"This groundbreaking is about rebuilding sovereign capability, strengthening America's maritime security and restoring the West's ability to deliver complex ships at speed and scale," Davies said. "Our group has spent 15 years proving that Western shipbuilders can be transformed into world-class industrial assets. We are proud to bring our experience and expertise to the great state of Texas."

Co-founder and Chairman Alex Vicefield called the occasion a landmark for the country. "The return of complex shipbuilding to Texas is a historic milestone for the United States," he said. "Gulf Copper gives us a strategic foothold in one of America's most important maritime centres, with access to talent, infrastructure and world-class partners."

Gov. Abbott framed the investment in national security terms. "Texas is ground zero for the revitalization of the American shipbuilding industry," he said. "Davie Defense's significant investment in this expanded shipbuilding facility will bring more advanced defense manufacturing to our great state, create thousands of good-paying jobs, and enhance America's maritime security."

Sen. Cruz, who chairs the Senate Commerce Committee, noted the legislative backdrop for the program. "As Chairman of the Senate Commerce Committee, I made sure that the Coast Guard got the largest investment in its history – over $24 billion, more than double its entire annual budget – in the landmark Working Families Tax Cuts Act last summer," he said. "This shipyard shows that when you eliminate government bureaucracy and back it with real investment, opportunity inevitably follows."

Sen. Cornyn said the project would advance both economic and national security goals. "This historic investment in Galveston and Port Arthur will bring thousands of well-paying jobs to Texans, modernize our Coast Guard fleet through the construction of Arctic Security Cutters, and strengthen our shipbuilding capabilities to bolster our national security," he said.

Deputy Secretary Edgar pointed to Arctic competition as a driving force behind the program. "This American Icebreaker Factory will stand as a testament to President Trump's promise to resurrect the U.S. shipbuilding industry and reestablish American maritime dominance," Edgar said. "Nowhere is this need more apparent than in the Arctic, where our adversaries are working to strengthen their presence for access to vital shipping lanes and natural resources."

Rep. Weber, whose district includes the Port Arthur facility, said the program addresses a long-standing strategic gap. "For far too long, America allowed its maritime strength to fall behind while our adversaries aggressively expanded theirs," he said. "Today, we are beginning to reverse that course."

The five Davie Defense ASCs are part of a broader U.S. government initiative to field a total of 11 Arctic Security Cutters. The remaining six vessels are to be built under separate contracts: Bollinger Shipyards, Lockport, La., holds a $2.14 billion contract for four ASCs at its Houma, La., yard, and Finnish shipyard Rauma Marine Constructions holds a contract for two additional cutters, both with first deliveries expected in 2028–2029.

The groundbreaking also featured a special salute from the battleship USS Texas (BB-35), currently undergoing renovation at Gulf Copper. The ship was commissioned in 1914 and is one of the last remaining dreadnought-era battleships. The vessel served 34 years in the U.S. Navy, including five World War II campaigns, and is being transformed into a modern museum by the Battleship Texas Foundation. Gulf Copper is providing in-kind support to the restoration effort.

Executive Editor Eric Haun is a New York-based editor and journalist with over a decade of experience covering the commercial maritime, ports and logistics, subsea, and offshore energy sectors.