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Ontario Shipyards temporarily pauses operations in Thunder Bay

Canada’s Ontario Shipyards has decided to temporarily suspend its Thunder Bay Plant, citing worker shortages and a slow market.

In 2020, Ontario Shipyards (then known as Heddle Shipyards) entered into an agreement with another Canadian shipbuilder, Seaspan Shipyards, to build the hulls for a future two polar icebreaker program as part of Canada’s National Shipbuilding Strategy (NSS). In 2021, Ontario Shipbuilders announced the acquisition of Fabmar Metals Shipyard in Thunder Bay, Ontario, which is planned to be used to build ship modules for icebreakers.

However, due to delays in the Seaspan Shipyard project, the Canadian government decided to re-launch a new round of shipyard bids under the NSS, with the intention of attracting more shipyards to participate in the construction of polar icebreaker projects.

Finally, Levis, Quebec, Canada-based shipbuilder Chantier Davie Canada was successful in joining the icebreaker program. Seaspan Shipyard and Davie Shipyard each won a bid for an icebreaker. Since then, Seaspan Shipyard has been advancing its research and development efforts in support of its participation in the program and expects to begin production of the first production block this year.

The extent of the impact of the split of the two polar icebreaker project on the Ontario shipbuilder is unclear, but the shipbuilder has decided to shut down its shipyard facility in Thunder Bay. According to local media reports, the Fabmar Metals shipyard is now fully equipped and ready to start up again, but 15 workers at the shipyard have been fired.

Currently, Ontario Shipyards also operates two shipyards in Hamilton and St. Catharines, in which it has invested heavily in shipyard equipment and workforce training.

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