Quebec shipyard reopens with help from Ottawa
1,100 workers back to work by end of March
Last Updated: Monday, March 2, 2009 | 2:20 PM ET
CBC News
With some help from the federal government, the Davie shipyard in Lévis, Que., is bucking the economic trend by calling back 1,100 workers it laid off last December.
Just across the river from Quebec City, Davie Yard Inc. reopened Monday, initially with just 60 to 75 workers to get things ready for full production by the end of March, according to Paul-André Bulotte, president of the shipyard's employees union.
Financial troubles forced Davie to close its operations last December to preserve cash.
But the federal government stepped in just a week after it closed with $380 million in credit financing and guarantees.
Most of the $380 million will come in the form of loan guarantees to companies that owe money to Davie so they are able to pay their bills. Davie will also benefit from a $50 million line of credit.
When announcing the financial package last December, International Trade Minister Stockwell Day said the plan would allow Davie to complete a major contract it had in the works for five large ships.
The shipyard is the largest in Canada. It has built more than 700 ships since the yard opened in 1825.
