Foreign Affairs and International Trade Canada

Foreign Affairs and International Trade Canada

December 17, 2008 10:50 ET

Canada Offers Support to Davie Yards Inc.

OTTAWA, ONTARIO--(Marketwire - Dec. 17, 2008) - The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today has authorized Export Development Canada (EDC) to make available up to $380 million in financing and guarantees for Davie Yards Inc. to help the company complete an order for five ships for two buyers. The support will be provided under the Canada Account. The support is also conditional on agreement being reached on the terms and conditions between EDC and Davie Yards.

These contracts will help maintain 1,100 direct jobs and could add 500 new jobs to the Quebec City region.

"Shipbuilding is an important industry for Canada," said Minister Day. "It plays a vital role in building and maintaining the fleets that provide our maritime security. Our decision today is an extremely important development as we act to ensure that Davie Yards remains a fixture in Canadian shipbuilding and in the region."

"Our government is committed to procure, repair and refit vessels in Canada according to the government's Buy Canada policy," said the Honourable Christian Paradis, Minister of Public Works and Government Services and regional minister for Quebec. "Today's announcement will help ensure that Davie remains a viable contributor to Canada's shipbuilding capacity."

Davie Yards Inc. owns and operates Canada's largest shipyard in Levis, Quebec. The shipyard is one of the few remaining shipyards that has built and refitted large and complex Canadian Navy, Coast Guard, and Department of Fisheries and Oceans vessels.


BACKGROUNDER

Canada Account

Export Development Canada (EDC) provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets, making it possible for these companies to compete internationally.

Founded in 1944, EDC is a Crown corporation that operates on commercial principles. It is financially self-sustaining, and is accountable to Parliament through the Minister of International Trade.

The vast majority of transactions facilitated by EDC on behalf of Canadian companies are done under EDC's Corporate Account. Transactions that fall outside the scope or risk tolerance of the Corporate Account may be considered under the Canada Account.

Canada Account transactions are negotiated, executed and administered by EDC, but the risks ultimately rest with the Government of Canada. EDC requires the authorization of the Minister of International Trade, with the concurrence of the Minister of Finance, before entering into a Canada Account transaction.

Canada Account information can be found in Annual Reports published on EDC's website site at www.edc.ca/english/index.htm. EDC also publishes information on individual Canada Account transactions.

Contact Information

  • Office of the Minister of International Trade
    and Minister for the Asia-Pacific Gateway
    Melisa Leclerc
    Director of Communications
    613-992-6186
    or
    Foreign Affairs and International Trade Canada
    Trade Media Relations Office
    613-996-2000
    www.international.gc.ca/index.aspx