California Forever has suffered a major setback in its effort to develop a shipyard at Collinsville in Solano County. The project lost out on a $3.2 billion contract after a prospective defense startup tenant decided to move forward with a Texas location instead.
The missed deal is a blow to the group’s broader vision for the waterfront site, which had been positioned as a potential home for large-scale industrial and maritime development. With the tenant choosing another state, the Collinsville shipyard proposal now faces fresh questions about momentum and near-term viability.
The decision also highlights the intense competition between states for defense-related manufacturing and infrastructure projects. For California Forever, losing a high-value contract tied to a possible anchor tenant removes a significant opportunity to strengthen the case for building out the Solano County shipyard.
While the company’s larger plans for the area remain in view, the loss of this agreement underscores the challenges of turning an ambitious development proposal into an operational industrial hub. The Texas selection leaves California Forever without a marquee shipyard commitment at a critical stage.
