A shipbuilder is expanding on the Mississippi Gulf Coast after receiving a $746 million contract to make a heavy icebreaker for the U.S. Coast Guard.

Mississippi officials say Monday that VT Halter Marine will invest $37.5 million at its Pascagoula shipyard and is expected to create 900 jobs the next five years.

Mississippi Development Authority is providing a $12.5 million grant for a dry dock and $1.5 million for workforce training.

The Navy announced in April that Halter Marine received the contract to build the Coast Guard’s first new heavy icebreaker since 1976. It said most work will be done by Halter in Pascagoula and some in New Orleans and Metairie, Louisiana.

Expansion in Pascagoula will begin late this year, and the company expects to deliver the icebreaker in 2024.