Source: The Standard
Port Weller dry docks in St. Catharines could be a beehive of activity if Ontario Shipyards secures a share of billions of dollars being invested in national defence over the next decade.
The company, formerly known as Heddle Marine, announced this week it has partnered South Korean shipbuilding giant Hanwha Ocean to build a training and recruitment vessel at its Hamilton facility.
Ontario Shipyards president and CEO Shaun Padulo described it as a “proof of concept” to show the federal government his company is ready for a piece of the Defence Industrial Strategy, announced by Prime Minister Mark Carney, also earlier this week.
The strategy includes $180 billion in defence procurement opportunities and $290 billion in defence-related capital investment opportunities in Canada over the next 10 years.
“Sometimes the stars align, and we just got lucky,” Padulo said. “I think people are giving me more credit and thinking I’m smarter than I am. It was just dumb luck to be honest with you.”
He said the agreement with Hanwha Ocean was in the works long before the defence strategy was announced.
Padulo said the expertise his company garners by working with the South Korean company to build the recruitment vessel in Hamilton this summer could help Ontario Shipyards land another federal government contract that “will keep us busy for 20 years, potentially.”
If awarded that contract, Ontario Shipyards would build as many as 12 corvettes for Canada’s Navy — creating 1,500 jobs in Hamilton and Niagara in the first year alone, and likely sustain thousands of jobs after that.
“We’d be utilizing the Port Weller dry dock facility to construct the corvettes,” Padulo said of the roughly 100-metre-long coastal patrol ships.
Padulo said Hanwha is a front-runner in a bid to replace Canada’s aging fleet of submarines, and the company is partnering with several Canadian industries including Ontario Shipyards to increase its chances of getting that contract — “which from all accounts I’m hearing will be the largest procurement in the history of the country, in terms of value.”
He said the winning bidder could be announced as early as May.
George Spezza, Niagara Region’s economic development director, said Ontario Shipyards is one of many local industries that stands to benefit from Ottawa’s investment in national defence.
He said his department identified defence as a sector with growth opportunities about six months ago, as well as for investment.
“ We’re in the process of gathering more information about the capabilities of our local industries to be part of the supply chain in defence and we have a good understanding of some of our current companies that are part of the defence supply chain.”
Spezza said Niagara Economic Development is finalizing plans for an April 27 round-table discussion on defence contracts, to help local companies secure work. More information will be provided as it becomes available at niagaracanada.com.
“So much of being part of the supply chain in defence procurement requires certain certifications and we want to ensure part of that panel will be about how to get yourself certified and ready to be part of it,” he said.
However, there are barriers — such as a shortage of skilled tradespeople in the region.
Spezza said Niagara’s post-secondary institutions need to be at the table.
Padulo said the shortage of skilled tradespeople for the marine industry is being addressed through his company’s partnership with Hanwha as well as Mohawk College.
Padulo, a Mohawk College board member, said he has been discussing the potential of establishing a training campus at its Hamilton facility to focus on marine trades.
If Hanwha is awarded the submarine contract, he said the South Korean company would help Mohawk College develop curriculum, training and support for students.
“Having one of the most technologically advanced builders in the world offer us all their technology and the latest and greatest state-of-the art stuff to train on, I think that will be incredible,” Padulo said.