Icebreaker initiative means significant opportunities for Finnish industrial policy
Finnish Government
Ministry of Economic Affairs and Employment
Publication date 11.7.2024
Press release
On 11 July 2024, Finland, the United States and Canada published a trilateral declaration concerning cooperation in the production of icebreakers (ICE). The initiative was signed by the Presidents of Finland and the United States Alexander Stubb and Joe Biden and Prime Minister of Canada Justin Trudeau.
By this initiative Finland, Canada and the United States make a commitment concerning deeper collaboration in building icebreakers in each country by sharing expertise, knowledge and competence. The initiative gives Finland the opportunity to strengthen its position in the North American supply chain of critical infrastructure.
The ICE initiative is a highly significant opportunity in terms of Finland's economic, employment and industrial policy. The Ministry of Economic Affairs and Employment believes that the agreement will provide a long-lasting boost to the Finnish maritime industry cluster and its leading shipyards.
"The declaration gives Finland the opportunity to offer, in a very concrete way, top-class Arctic expertise to be used by our allies and partners. At the same time, we can effectively respond to the common critical needs in the Arctic region," Minister of Economic Affairs Wille Rydman says.
Next, Finland, the United States and Canada will start negotiations on the concrete implementation plan of the declaration. In Finland this work will take place under the lead of the Ministry of Economic Affairs and Employment and in cooperation with the Ministry for Foreign Affairs and Ministry of Defence.
Finland has strong maritime cluster and top-class icebreaker expertise
From the perspective of the geopolitical situation and strategic autonomy, it is important that Finland has a viable maritime industry cluster in future as well. Finland's NATO membership and the increased opportunities for international cooperation related to icebreakers and other special purpose ships this has brought along can significantly improve the operating conditions and growth of the Finnish maritime industry.
"The future of the Finnish shipyards mainly depends on the development of the cruise and other passenger ship markets. Because of the geopolitical situation, completely new opportunities could open for Finnish icebreaker expertise, where we are among the best in the world," Minister Rydman says.
Once the initiative is realised, the opportunities offered by the agreement to be negotiated can be substantial. The estimate for the need of the western allies and partner countries for the next decade is in the order of several tens of ice-class government vessels. The building capacity of Finland's maritime industry over the next decade is also estimated to be significant.
Potential of Finland's Arctic expertise known for long time in North America
The potential of Finnish shipyards as suppliers of icebreakers to North America has been discussed for a long time. A step closer to making this a reality was taken in November 2023 with the change of the owner of the Helsinki shipyard. The State of Finland was not a party to the transaction but adopted a positive position on the arrangement from the very start of the negotiations and participated in the negotiation process. Minister of Economic Affairs and Employment Rydman contributed to the change of ownership by negotiating with the Minister of the Economy, Innovation and Energy of Quebec Pierre Fitzgibbon, and since the transaction was completed he has supported the export efforts related to the icebreaker industry.
Finland's strong maritime industry, port and ship-building expertise was also showcased during Minister Rydman's visit to Canada and the United States in March. He was accompanied by a business delegation of 30 people from 20 different companies and organisations.
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