Governor Greg Abbott participated in a groundbreaking ceremony on June 1 to launch a $1 billion modernization of Davie Defense’s Gulf Copper Shipyards. Spanning coastal manufacturing facilities in Galveston and Port Arthur, Abbott said the infrastructure overhaul marks the return of large-scale shipbuilding to Texas for the first time in generations.
According to Davie Defense leadership, the multi-year capital expansion is designed to transform the historic industrial site into the “American Icebreaker Factory” — a purpose-built production hub tailored to manufacture next-generation Arctic Security Cutters (ASC) for the U.S. Coast Guard.
The first phase of the shipyard upgrade is scheduled for completion in 2028, which directly aligns with the beginning of domestic construction on the third of five planned federal vessels. The company’s sister firm, Helsinki Shipyard in Finland, will construct the first two polar-capable cutters, with delivery of the initial flagship slated for 2028.
A 2025 independent economic impact evaluation conducted by Austin-based analyst Impact Data Source projects that the Gulf Copper modernization will create 2,400 American manufacturing jobs. The study estimates that the broader statewide supply chain and maritime economic activity will support up to 7,000 regional jobs.
To incentivize the private investment over out-of-state competitors, the state extended a performance-based $21.7 million grant to Davie Defense through the Texas Enterprise Fund (TEF). Local leaders, including Jefferson County Judge Jeff Branick, said that Davie Defense has established a partnership with Lamar State College to train shipfitters and skilled trade workers to fulfill the high-volume workforce requirements.
Other officials at the event included U.S. Senator Ted Cruz, Congressman Randy Weber, Office of Management and Budget Director Russell Vought, and U.S. Coast Guard Commandant Admiral Kevin Lunday.
During the ceremony, the shipyard hosted the historic Battleship Texas for a special salute, as the legendary World War II vessel is currently undergoing extensive renovations at the Gulf Copper facility.
Governor Abbott praised the maritime project, labeling the massive capital investment a quintessential “America First” initiative that advances national security and warfighting readiness while supporting American manufacturing and regional reindustrialization.