Funding to strengthen Ontario shipyards, boost marine manufacturing and create thousands of jobs
ST. CATHARINES, Ont. — The Ontario government is investing more than $90 million to expand the province’s shipbuilding capacity, a move aimed at strengthening Canada’s marine industry, supporting national defence priorities and creating thousands of skilled jobs across the province.
Premier Doug Ford announced the funding in St. Catharines on Tuesday, saying the investment will help Ontario shipbuilders meet rising demand for domestically built vessels while supporting Canada’s National Shipbuilding Strategy. The funding will be delivered through the Ontario Shipbuilding Grant Program (OSGP), which was launched in 2025 to help the province’s marine sector expand infrastructure, modernize equipment and develop a skilled workforce.
The announcement comes as Canada and its allies increase defence spending and seek to strengthen domestic industrial capabilities. Ontario officials say the investment aligns with the province’s broader strategy to support national security, defence manufacturing and economic growth.
“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.”
Shipyards Across Ontario Receive Targeted Investments
Under the latest round of OSGP funding, Ontario Shipyards will receive $11 million, Allied Marine and Industrial in Port Colborne will receive more than $8 million, MetalCraft Marine Inc. in Kingston will receive more than $6 million, and Connor Industries in Parry Sound will receive $1.1 million.
The funding will support infrastructure upgrades, workforce training initiatives and the acquisition of new equipment and machinery. The province also announced plans to expand the OSGP with up to $64 million in future funding, further increasing support for the sector.
Transportation Minister Prabmeet Sarkaria said the marine industry remains an important contributor to Ontario’s economy and long-term growth prospects.
“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 Sarkaria. “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.”
Supporting Canada’s National Shipbuilding Strategy
Ontario officials say the funding will help provincial shipbuilders participate more actively in Canada’s National Shipbuilding Strategy, the federal government’s long-term initiative to renew fleets for the Royal Canadian Navy, Canadian Coast Guard and Transport Canada.
The strategy focuses on three areas: construction of large vessels, construction of small vessels, and vessel repair and maintenance. Ontario’s investment is intended to ensure local shipbuilders can compete for future contracts while strengthening domestic supply chains and manufacturing capabilities.
Minister of Economic Development, Job Creation and Trade Vic Fedeli said the sector presents a significant opportunity as defence spending continues to grow globally.
“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 Fedeli. “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.”
Industry Leaders Welcome the Funding
Industry representatives and business groups welcomed the investment, saying it will improve competitiveness and support long-term growth.
Shaun Padulo, President and CEO of Ontario Shipyards, described the funding as a major step toward expanding shipbuilding capacity in the province.
“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.”
Bob Mitchell, Founder and CEO of Allied Marine and Industrial, said the funding will help the company modernize operations and expand commercial ship repair services.
“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.”
Representatives from Connor Industries, MetalCraft Marine, HOPA Ports, the Ontario Chamber of Commerce and the Ontario Marine Council also praised the initiative, highlighting its potential to strengthen supply chains, improve transportation infrastructure and support employment across the province.
Growing Strategic Importance of the Marine Sector
The latest funding builds on Ontario’s previous commitment of $215 million announced last year for the shipbuilding industry and broader marine sector. The province expects the second application intake for the OSGP to open in late summer 2026.
Ontario’s strategic location along four of the five Great Lakes and the St. Lawrence River gives the province a significant role in North American trade. Government officials note that the Great Lakes region generates approximately $7.5 trillion in economic output annually, making it one of the world’s largest economic regions.
With expanded funding, Ontario aims to position itself as a leading hub for shipbuilding, marine innovation and defence-related manufacturing while helping meet future demand for Canadian-built vessels and strengthening the country’s economic and maritime security.