HALIFAX, Nova Scotia, June 04, 2019 (GLOBE NEWSWIRE) -- Irving Shipbuilding is committed to maximizing Canadian content and benefit through our construction of the Royal Canadian Navy’s Arctic and Offshore Patrol Ships (AOPS). Our AOPS contract requires us to achieve at least 50% of Canadian Content Value (CCV) in direct work, recognizing that in some instances, we must procure material for the ships internationally.
Today, approximately 70% of the work on AOPS is direct Canadian content. This is work that a Canadian supplier does with us directly related to the AOPS program.
Any work performed outside of Canada is offset by making investments in Canada to ensure that 100% of the value of the AOPS contract is spent in Canada. These are called Indirect Industrial and Technological Benefits (Indirect ITB).
The diesel electric engines onboard each AOPS are a good example of how the Indirect ITB program works. Irving Shipbuilding selected General Electric (GE) to provide the engines for each AOPS. There is no company in Canada that produces this type of ship engine; therefore, the engines had to be procured from outside the country. To offset this, GE adjusted its global supply chain to include Canadian companies and made investments in innovative research taking place within Canada. These investments are with Canadian organizations involved with oil and gas, regenerative cell technology, and jet aircraft engines.
Indirect ITB transactions create opportunities for all Canadian industries to benefit from defence procurement, help to grow our overall economy and make Canada more innovative.
Other examples of indirect ITBs from Irving Shipbuilding and major subcontractors include:
In addition to the direct and indirect investments as a result of the AOPS program, Irving Shipbuilding committed to investing 0.5% of contract revenue toward creating a sustainable marine industry in Canada as part of the Value Proposition program. As of March 31, 2019, Irving Shipbuilding has committed over $12.5 million in value proposition investments to support 11 initiatives across the country that will strengthen and grow the Canadian Marine Industry in the areas of workforce development, technology and commercialization.
Examples of Value Proposition Investments include:
For more information on Irving Shipbuilding’s spending commitments visit, www.ShipsforCanada.ca.
About Irving Shipbuilding Inc.
Irving Shipbuilding Inc., Canada’s National Shipbuilder, is the most modern shipbuilder and in-service ship support provider in North America. Headquartered in Halifax, Nova Scotia, our skilled team and innovative facilities provide efficient building, fabrication, conversion and servicing of vessels and offshore platforms. Irving Shipbuilding Inc. is the Prime Contractor and Shipbuilder for Royal Canadian Navy’s Canadian Surface Combatant (CSC) and Arctic and Offshore Patrol Ship (AOPS) vessels under the National Shipbuilding Strategy (NSS). We are proud to continue our long history as a trusted partner in Canadian shipbuilding. Irving Shipbuilding Inc. is a member of the J.D. Irving, Limited group of companies, a diverse family owned company with operations in Canada and the United States. Learn more at www.IrvingShipbuilding.com or www.ShipsforCanada.ca.