The Couillard government flies to the rescue of Chanie Davie de Lévis by investing $ 188 million in one of its subsidiaries, Astérix Inc.
The government’s investment is made through Investissement Québec in exchange for preferred shares. A banking consortium, formed in particular with JP Morgan and Anchorage Capital, completes the financial package of the project with a total value of $ 488 million.
According to the government, this participation will allow the company to release cash, which is necessary for the modernization of its facilities. Quebec hopes that the shipyard can better position itself to win new contracts, because of increased productivity.
“This innovative financing structure will help boost Québec’s shipbuilding industry and encourage the maintenance of modern, productive and competitive shipyards, thus ensuring the continuation of quality jobs and valuable expertise in Quebec”, said Friday the Minister of Finance, Carlos Leitao, by communiqué.
Asterix Inc., the Davie subsidiary, owns the supply vessel “MV Asterix”, which is to be converted into a supply vessel for the Royal Canadian Navy.
This investment is part of the Québec Maritime Strategy for 2030, aimed at identifying new financial means to support Québec’s naval industry. Some $ 250 million was earmarked for participation in shipyard projects in Quebec.
Jobs at Davie have been under threat for several months because of lack of new contracts. Some 150 site employees were shown the door not later than at the end of June.