Wednesday, June 22, 2011

Saint John Board of Trade supports Irving Shipbuilding’s bid for National Shipbuilding Procurement Strategy contract

The following is a news release from the Saint John Board of Trade, June 22, 2011.

SAINT JOHN, NB: The Saint John Board of Trade supports Irving Shipbuilding’s bid for one of the two National Shipbuilding Procurement Strategy contracts, which would see the Canadian economy grow by an estimated $1.5 billion in peak years, and potentially create 11,500 jobs in Nova Scotia and 4,500 jobs outside the province. As one of only five shipyards across the country on the short-list of potential bidders and the only shipyard in Atlantic Canada on the short-list, the Saint John Board of Trade supports the bid that will see a long-term contract given to the Halifax Shipyard. The long-term contracts being offered by the Government of Canada will enable the successful shipyards to undertake long term strategic planning and provide certainty and stability to the companies included in their supply chains.

Irving Shipbuilding, the Halifax shipyard, and the region have a proven record of expertise in building naval ships. Irving Shipbuilding alone has built over two dozen government vessels, and numerous commercial and off-shore vessels. “Their ability to offer shipbuilding, fabrication, conversion and repair facilities, and a strong supply chain that stretches throughout the Atlantic Provinces makes them a strong contender for one of the two available large vessel contracts” commented John Warrington, Chairman of the Saint John Board of Trade.

“The Irving companies have a proven record in the Maritimes of using the local supply chain. I fully believe companies across the Atlantic Provinces will benefit from a contract awarded to the Halifax Shipyard” Mr. Warrington continued. “We’re a community on the East Coast – we want to see everyone rise together and realize that what’s good for one will be good for all. Our Chambers of Commerce work together, our Governments work together, and naturally our businesses work together.”

In 2009 and 2010, Irving Shipbuilding worked with 115 New Brunswick suppliers, more than thirty of those suppliers had contracts worth over $100,000, and eight at more than $1 million. For every $1,000 in real GDP generated from shipbuilding inside Nova Scotia by this contract, another $491 is expected be spent in other regions across Canada, $20 of which will be spent in the other Atlantic Canadian provinces. “This is a multi-billion dollar, long-term project which will strengthen many companies in our region” Mr. Warrington mentioned.

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