On January 1, 2026, California’s Mare Island Dry Dock (MIDD) announced via its official website that due to “unfortunate circumstances beyond our control,” it had made the “difficult decision” to end all shipyard operations. This shutdown decision took immediate effect, resulting in the loss of 80 full-time jobs.
The City of Vallejo, California, stated that relevant departments received notification from MIDD regarding this business decision on December 30, 2025. The city views this as an unfortunate development and noted that MIDD and its shipyard have long been significant contributors to the local economy.
According to a statement from the City of Vallejo: “This shutdown stems from unforeseen business disruptions, including the loss of a critical U.S. Coast Guard contract that directly and significantly impacted MIDD’s financial stability. Despite strenuous efforts to secure additional financing and new contracts, MIDD determined that continued operations were no longer feasible.”
Previously, MIDD had provided maintenance services for the U.S. Coast Guard’s heavy icebreakers “Healy” and “Polar Star,” but the company recently lost out in a new round of bidding for the “Healy” repair contract while simultaneously bidding for a new five-year repair contract for the “Polar Star”. Following the failure to win the “Healy” repair contract, MIDD stated it is seeking alternative business; unfortunately, its financial situation has deteriorated significantly.
According to available data, Mare Island was once home to the first naval base on the U.S. West Coast and remained the site of Mare Island Naval Shipyard until 1996.Since 2013, MIDD has taken over and operated the relevant shipyard facilities. The yard is equipped with two 213-meter-long concrete dry docks and features nearly 400 meters of quay berth frontage.Reports indicate that MIDD had a workforce of 1,000 employees at its peak, yet its order volume has plummeted by 65% over the past three years.