Ontario Investing More than $90 Million to Support Expanded Provincial Shipbuilding Capacity
Press Release + Noah Note
ST. CATHARINES — Today, Premier Doug Ford was in St. Catharines to announce that the Ontario government is investing over $90 million through the Ontario Shipbuilding Grant Program (OSGP) to increase capacity in the province’s shipbuilding industry as part of its plan to protect Ontario. The investment will help meet the growing demand for Ontario-made vessels, help Ontario shipbuilders support Canada’s National Shipbuilding Strategy and boost the economic competitiveness of Ontario’s shipbuilding and its supply chain while creating thousands of good-paying jobs across the marine sector. The investment is part of Ontario’s ongoing work to support national security and defence, as outlined in the framework for the Ontario Defence Industrial Strategy.
“As Canada and our allies work together, making record investments in defence and global security, Ontario is ready to build the ships that will protect our country and keep our economy moving,” said Premier Ford. “Today’s investment will increase the resilience of Ontario’s marine industry, support thousands of good-paying jobs across Ontario and give businesses more ways to get their products to market.”
Through the OSGP, the province is investing $11 million into Ontario Shipyards, with operations across the Great Lakes; over $8 million into Allied Marine and Industrial in Port Colborne; more than $6 million into MetalCraft Marine Inc. in Kingston and $1.1 million into Connor Industries in Parry Sound. The funding will be used for skills training, infrastructure improvements and new machinery and equipment, helping to position Ontario as a global leader in the “blue economy” and marine trade. The province will also expand the OSGP to provide up to $64 million in future funding
“The marine sector is a vital driver of Ontario’s economy, contributing hundreds of millions of dollars to the province’s GDP each year,” said Prabmeet Sarkaria, Minister of Transportation. “Our government is making historic investments in Ontario’s shipbuilding industry to ensure the sector’s long-term prosperity and generate good-paying jobs that drive economic growth for years to come.”
The OSGP will help Ontario-based shipbuilders increase Canada’s capacity under the National Shipbuilding Strategy, a long-term project to renew the country’s fleet of combat and non-combat vessels for the Royal Canadian Navy, Canadian Coast Guard and Transport Canada. As part of the broader federal Defence Industrial Strategy, Canada’s National Shipbuilding Strategy focuses on three pillars: construction of large vessels, construction of small vessels, and vessel repair, refit and maintenance. Supporting this work will complement Ontario’s Defence Industrial Strategy by ensuring the province’s shipbuilders capitalize on increased federal defence spending, which could reach $150 billion annually by 2035 and generate lasting economic benefits for Ontario workers.
“As Canada and our allies make record investments in defence and security, Ontario stands ready to seize this generational opportunity for workers and businesses,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Through continued investment in the Ontario Shipbuilding Grant Program, we are delivering on the mandate set forth in the Ontario Defence Industrial Strategy framework, while equipping shipbuilders across the province to design, develop and deploy the marine technologies our supply chains need.”
Ontario launched the OSGP in 2025 to ensure the province’s shipbuilding sector has the skills, resources, infrastructure and workers to contribute to Canada’s maritime security and shipbuilding future. The expanded OSGP supports Ontario’s participation in Canada’s National Shipbuilding Strategy by leveraging Ontario’s shipbuilding capacity to meet future demand.
Quick Facts
Last year, Ontario announced $215 million in funding to support the province’s shipbuilding industry and broader marine sector.
The second application intake for the OSGP is expected to launch in late summer 2026.
The GDP of the Great Lakes region is approximately $7.5 trillion. If it were a country, this would make it the third-largest economy in the world.
Ontario is home to four of five Great Lakes and the St. Lawrence River, which includes 10,500 kilometres of shoreline. We share these waterways with our most important trading partner, the United States.
Quotes
"The OSGP is a transformational investment. It will level the playing field so Ontario can compete for major opportunities under Canada’s National Shipbuilding Strategy. The federal government needs shipbuilding capacity in Ontario, and Ontario Shipyards, enabled by the OSGP, will be a critical conduit to deliver that capacity. This $11 million investment will support the construction of a new training and recruitment vessel in Hamilton that will help attract and develop the next generation of skilled shipyard workers, while laying the foundation for future work at the Port Weller Dry Docks in St. Catharines."
Shaun Padulo
President and CEO, Ontario Shipyards
"This investment will allow us to expand our commercial ship repair capabilities, modernize our operations and invest in the skilled workforce needed to support Ontario's marine sector. It will help unlock new opportunities for innovative growth, strengthening marine and industrial excellence in Ontario."
Bob Mitchell
Founder and CEO, Allied Marine and Industrial
"We are very grateful to the province of Ontario and Premier Ford for this $1.1 million investment. In a small town like Parry Sound, support of this size makes a real and immediate difference. It helps create good local jobs, strengthens our business and allows us to invest in equipment that supports long-term growth. Most importantly, it keeps opportunity here in our community and contributes directly to the local economy."
Gerry Ramsay
Executive Vice President, Connor Industries
"MetalCraft Marine is grateful for the Government of Ontario’s significant investment in the province’s shipbuilding and marine defence sectors through the Ontario Shipbuilding Grant Program. This commitment will help Ontario companies strengthen capacity, support skilled jobs and training, modernize equipment and infrastructure and compete in the growing market for purpose-built vessels serving fire, police, border security and military operations. As a Kingston, Ontario-based builder of mission-ready aluminum boats, we are proud to support those who protect people, communities and waterways while strengthening Ontario’s contribution to Canada’s marine security and defence capabilities."
Mike Reed
General Manager, MetalCraft Marine
"This investment is about more than shipbuilding. It's about strengthening Canada's marine future. Strong shipyards support a broader ecosystem of ports, manufacturers, logistics partners and marine businesses that keep goods moving and economies growing. By investing in this sector, Ontario is helping build more resilient supply chains, creating opportunities for Canadian businesses and strengthening our ability to move Canadian goods through Canadian gateways. At a time when economic resilience and sovereignty matter more than ever, a strong domestic marine sector helps ensure Canada can build, move and support the goods and services our economy depends on. That’s a vision that will deliver benefits for generations to come."
Ian Hamilton
President and CEO, HOPA Ports
"The Ontario Chamber has championed stronger supply chains and transportation corridors because they drive economic growth, and it’s encouraging to see the government respond. By moving our goods to markets even faster, we will strengthen Ontario’s resilience and competitiveness."
Daniel Tisch
President and CEO, Ontario Chamber of Commerce
"Today's investment in Ontario's government shipbuilding capacity is an important step toward supporting Canada's maritime strength by ensuring future vessel requirements can be met. It also recognizes the importance of building Ontario's commercial ship repair capacity to keep the Great Lakes fleet moving the foundational commodities that drive our economy. We appreciate the province's commitment to strengthening Ontario's marine sector through investments that enhance supply chains, grow the economy and create meaningful employment opportunities, and we look forward to our continued partnership."
Hannah Bowlby
Chair, Ontario Marine Council
Noah Note: This money has been on the table too long. I am happy for everyone who has received some, and who are looking at a bit of relief in the current climate, but this funding has sat forever. It has been in play to much. It should have been out there a long time ago.
I am supportive of targetted investment in critical, strategic industries like Shipbuilding, but that funding needs to be stable, flexible and not justnreactive in nature. It feels they wanted that, but it also stretched out the timelines.
I am happy to see Ontario here. Ontario Shipyards got hit hard with the Hanwha loss. They had a lot of gope for their partnership and investment. That is gone now with CPSP, which is sadly just nature of competition's like this. Someone loses, and that means that the partmers lose. It would happen no matter which side won.
That doesn't mean I can't frown a bit at it. No idea if this also stops their FASST-V partnership, hopefully not.