A major defense manufacturing project is set to create more than 2,400 jobs in the Galveston and Port Arthur communities after Davie Defense Inc. received a $21.8 million Texas Enterprise Fund grant to support its Arctic icebreaker shipbuilding operations.
Governor Greg Abbott announced the grant earlier this year, part of a broader expansion that will see the company invest more than $730 million to grow its business in Texas. The project comes as President Donald Trump prioritizes the production of Arctic Security Cutters — polar icebreakers designed to boost national security in the Arctic region.
“Their presence is vital to our economic growth and benefits not only Galveston, but the entire nation,” Galveston Mayor Craig Brown said in the governor’s release.
Davie Defense closed the acquisition of Gulf Copper & Manufacturing Corporation’s shipbuilding assets in Galveston and Port Arthur in December 2025, creating an official base in Texas for the manufacturing work. The company will construct two Arctic Security Cutters in Finland and three domestically, with delivery of the first cutter expected in early 2028.
The U.S. Coast Guard announced it completed contracts for 11 Arctic Security Cutters in total, responding to the president’s directive to expand the country’s icebreaker fleet. Before the expansion, the Coast Guard’s operational polar fleet included just two Arctic Security Cutters.
“Accelerating construction of these cutters will enable the Coast Guard to defend our northern border and approaches, while strengthening domestic shipbuilding and reinforcing the nation’s industrial base,” Admiral Kevin Lunday, commandant of the U.S. Coast Guard, said in the announcement.
Icebreakers are designed to move through ice-covered waters, helping to keep trade routes open and supporting critical operations during seasonal or permanent ice conditions. For the Houston-Galveston region, the project represents one of the largest single manufacturing job creation commitments in recent years and a significant diversification of the area’s industrial base beyond oil and gas.
The state’s investment through the Texas Enterprise Fund signals confidence in the long-term viability of the shipbuilding operation and its potential to attract additional defense manufacturing supply chain investment to the greater Houston area.
