Reuters reported that on September 9, U.S. President Donald Trump and Finnish President Alexander Stubb signed a memorandum of understanding (MOU) on icebreaker cooperation, authorizing the U.S. Coast Guard to acquire up to 11 icebreakers to enhance U.S. security capabilities in the Arctic region.
Under the agreement, Finland will construct four new icebreakers at its domestic shipyards. Subsequently, the U.S. will utilize Finnish shipbuilding technology to build up to seven additional new icebreakers at U.S. shipyards, with the first vessel scheduled for delivery by 2028.
This collaboration aims to lay the groundwork for a commercial agreement between the U.S. Coast Guard and Finnish shipbuilders. President Trump had previously advocated for the U.S. to procure 40 new icebreakers to bolster national security in the Arctic region.
White House officials revealed that the U.S. Coast Guard’s upcoming order for 11 new icebreakers will cost approximately $6.1 billion. Three vessels will be constructed by international shipbuilder Davie in Galveston, Texas, while four will be built by Bollinger Shipyards in Louisiana. Neither of these U.S. shipyards has yet responded to the announcement.
Regarding the two shipyards disclosed in this announcement, Davie is planning to establish a U.S. icebreaker construction base to undertake the U.S. icebreaker project. With an investment of approximately $1 billion, this base will represent the largest expansion of U.S. shipbuilding capacity in decades. The facility is located at Gulf Copper Yard in Galveston Bay, Texas, which Davie acquired earlier.
Davie has acquired two Finnish shipyards for its icebreaker business—Helsinki Shipyard and Mantyluoto Shipyard. Finnish shipyards are renowned for icebreaker construction, with approximately 80% of existing icebreakers designed by Finnish companies and about 60% built in Finnish shipyards.
Previously, Finnish authorities had long sought to establish an icebreaker cooperation agreement with the U.S., but their efforts were repeatedly rejected due to the strict interpretation of the Jones Act—which mandates that the U.S. shipping industry must prioritize domestic companies.
However, a 2021 U.S. Congressional report noted that the Jones Act does not apply to icebreaker construction, and the President may authorize exemptions from other legal provisions restricting foreign shipyards from building vessels. This opens up more opportunities for international shipbuilders.
However, a 2021 U.S. Congressional report indicated that the Jones Act does not apply to icebreaker construction, and that the president can authorize exemptions from other legal provisions that restrict foreign shipbuilding. This provides more opportunities for international shipbuilders.
For Bollinger Shipyards, the shipbuilder formed the United Shipbuilding Alliance (USA) earlier this year with Edison Chouest Offshore (ECO) of the United States. The alliance aims to accelerate the design, construction, and delivery of a new generation of icebreakers that directly meet the urgent operational demands of the Arctic region.