Davie Defense Inc. has announced plans to expand its shipbuilding operations in Galveston and Port Arthur, Texas, with a focus on constructing Arctic icebreakers. The project is expected to create over 2,400 new jobs and involves more than $730 million in capital investment. To support this expansion, the company will receive a Texas Enterprise Fund (TEF) grant of $21,771,000.
“With the best business climate in the nation, Texas is a magnet for complex, critical manufacturing,” said Governor Greg Abbott. “This significant capital investment by Davie Defense will expand economic opportunity in Galveston and Port Arthur and create thousands of good-paying jobs and further bolster national defense by expanding capacity for the manufacture of icebreakers and other specialized vessels for the U.S. government and commercial customers. Texas is positioned to be a national hub for critical shipbuilding and, with our strong workforce, we will be for generations to come.”
Davie Defense aims to make its Texas facilities central to revitalizing American shipbuilding by adding needed capacity to the U.S. industrial base. The investment will support both government and commercial clients with complex vessel construction.
“Davie Defense is proud to deepen our commitment to Texas,” said Davie Defense CEO Kai Skvarla. “Texas has one of the world’s most business-friendly environments and the scale to support complex shipbuilding — a capability we’re bringing back to Texas for the first time in generations. Our investment will serve American industry and the U.S. government for decades to come — starting with Davie’s globally recognized specialty: the polar-capable icebreakers critical to U.S. national security.”
Senator Robert Nichols commented on the development: “Congratulations to the City of Port Arthur and Davie Defense for their investment and award from the Texas Enterprise Fund. Southeast Texas is a growing hub for manufacturing and development. This investment will help further protect our national and economic security and help create more opportunities for Southeast Texas to grow.”
Representative Christian Manuel also welcomed the announcement: “This is good news for Port Arthur. It brings skilled jobs and new investment to our community. I welcome the opportunity this project creates for local workers. It also reflects the strength of our region’s workforce and industrial base.”
Galveston Mayor Dr. Craig Brown stated: “Galveston is proud to have been selected by Davie Defense as the location of their shipbuilding facility, and we congratulate them on being the recipient of a Texas Enterprise Fund grant. Their presence is vital to our economic growth and benefits not only Galveston, but the entire nation.”
Port Arthur Mayor Charlotte M. Moses added: “This Texas Enterprise Fund award for Davie Defense, Inc. is great news for Port Arthur and for the people who call this city home. It reflects the steady work being done to bring new opportunities to our community. Davie Defense’s expansion means new jobs, new investment, and real opportunity for our residents. As a city, we are focused on economic growth that supports families, strengthens neighborhoods, and builds a better future for the next generation. We stand ready to work with Davie Defense as this project moves forward and to seeing the positive impact it will have across our community.”
Jefferson County Judge Jeff Branick expressed enthusiasm about workforce development efforts linked with Lamar State College: “I am extremely excited learn that Davie, a world-renowned shipbuilder, has decided to locate significant operations in Jefferson County and that Governor Abbott has come alongside local governments to incentivize their operations here in Port Arthur,” he said.“I am also encouraged by Davie’s partnership with Lamar State College to develop and train ship fitters and others who will be employed in their significant operations contributing to our local economy and our national security.”
Joshua Owens from Galveston Economic Development Partnership highlighted why Galveston was chosen: “Davie Defense chose Galveston because we are a pro-business community with a highly skilled workforce and a deep-water port,” he said.“The support from the Texas Enterprise Fund was crucial in making Texas the clear choice as the next domestic shipbuilding powerhouse.We are confident that Davie’s market leadership will spur other defense and maritime manufactures to consider the Texas Gulf Coast as their next location.”
Krystle Villarreal Muller from Port Arthur Economic Development Corporation noted: “On behalf of the Port Arthur Economic Development Corporation,we are honoredto celebratethe StateofTexas’awardofaTexasEnterpriseFundgranttoDavieDefenseInc.Thisinvestmentisastrongvoteofconfidenceinourcommunity’sworkforce,resilience,andbusinessclimate.WeareproudtohaveworkedalongsideDavieDefenseInc.,theStateofTexas,andourlocalpartnerstosupportthisexpansionthatwilldrivethecreationofnewjobsandsignificantcapitalinvestmentinPortArthur,furtherstrengtheningourlocaleconomyandprovidingnewopportunitiesforourresidents.”
The TEF grant program provides performance-based funding intended as an incentive when companies consider locations inside or outside of Texas.
Accordingtoinformationfromthe official website,theOfficeofTexasGovernorGregAbbottcontributedtothe state leading thenation injobsgrowthandrecordemploymentlevels.TheofficealsomaintainsitsprimaryofficesinAustinattheStateInsuranceBuildingandwasrecognizedwhenGregAbbottwaslistedamongthe100MostInfluentialPeoplebyTIMEin2024.Thegovernor’sofficefocusesonjobcreation,economicopportunitiesandeducationenhancementacrossthestate.GregAbbottwasfirstelectedtothepositionin2014andexercisesauthoritystatewide.
