Posted on January 5, 2026
The Bay Area’s Mare Island Dry Dock, stationed in the oldest shipyard facility on the West Coast, is suddenly closing and laying off more than 80 of its full-time union and non-union staff, the city of Vallejo said in a press release. Officials were alerted to the news on Dec. 30, learning the facility lost a critical U.S. Coast Guard contract “that had an immediate and material impact on the company’s financial stability” and “continuing operations was no longer viable.”
CBS first reported a Portland-based company had outbid the facility by $1 million to service the Coast Guard’s largest vessel, the Icebreaker Healy, which is now slated to head to Oregon.
“I don’t know why they did this, but I am going to find out,” U.S. Congressman John Garamendi told the outlet. Garamendi was among lawmakers to introduce the SHIPS for America Act to help boost the industry, also securing millions to invest in Vallejo’s maritime operations.
The Mare Island Dry Dock was established in 1854 as the first naval base on the Pacific Ocean in the U.S. and served as a major naval shipbuilding and repair facility for over 140 years, according to its website. The shipyard was also the controlling force of local shipbuilding efforts during World War II and was established as a California Historical Landmark in 1960. It was decommissioned after naval operations ended in 1996; by November 2013, Mare Island Dry Dock, LLC was established and reopened the facility to service repairs and overhauls of both commercial and government vessels.
In a statement, the LLC cited the “difficult decision” to “unfortunate circumstances beyond our control.”
“This company was built on hard work, long days, problem-solving, and a deep commitment to getting the job done right,” the statement read. “Along the way, we were fortunate to work with an amazing group of employees, customers, vendors, and friends who believed in us and supported what we were building.”
Vallejo officials said the city is collaborating with the Solano County Workforce Development Board to provide resources for affected employees, including job search assistance and retraining programs. Officials also plan to expand on existing maritime and commercial job opportunities on Mare Island, and said they recently hired a consultant to secure new federal funding in support of shipbuilding and repair efforts.
It’s a heavy blow to the industry that follows two other major closures in Solano County, including the Anheuser-Busch brewery in Fairfield and the Valero refinery in Benicia.
