As the global threat environment continues to evolve, the Government of Canada remains committed to making targeted investments to strengthen Canada's defence industry and support long-term security.
Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, highlighted a recent investment of $1.4 billion to expand Canada's domestic ammunition production capacity.
This investment is possible through the Canadian Defence Industry Resilience (CDIR) Program, which will strengthen Canada's defence industrial base by helping companies increase production capacity, build sovereign defence capabilities, and address critical supply chain vulnerabilities. The CDIR Program will enhance Canada's ability to produce defence‑related products and materials domestically, while improving the resilience of industrial supply chains for key components and raw materials.
Under this program, the Government of Canada has awarded three contribution agreements to General Dynamics - Ordnance and Tactical Systems of Quebec:
- $355.7 million to construct a nitrocellulose facility at the company's Valleyfield site;
- up to $57.9 million to establish Canada's first facility capable of loading, assembling, and packing M231/232 charges used in 155mm artillery at the company's Valleyfield site; and
- up to $642 million to establish a manufacturing facility to load, assemble, and pack 155mm High‑Explosive projectiles at the company's Le Gardeur site.
In addition to restoring the critical ability to manufacture nitrocellulose in Valleyfield, these agreements will generate significant economic benefits for the region. They are expected to create upwards of 356 jobs during construction and throughout indirect employment, strengthen Canadian supply chains through domestic sourcing, and increase Canada's capacity to scale munitions and propellant manufacturing during times of elevated demand. Together, these agreements will help attract further defence-sector investments and support innovation and workforce development through partnerships with educational institutions, contributing to long-term regional economic growth.
As previously announced by Minister McGuinty, the Government of Canada will also provide up to $305.4 million in financial assistance to IMT Precision in Ingersoll, Ontario. This will establish a new manufacturing facility capable of producing empty metal shells for more modern and effective 155mm artillery projectiles, which will increase Canada's sovereign ammunition production capacity reducing dependency on foreign suppliers.
These investments, guided by Canada's first Security, Sovereignty, Prosperity: Canada's Defence Industrial Strategy, will strengthen Canada's sovereign ammunition production capacity by expanding domestic manufacturing of key artillery charge components, and create skilled jobs in the region. This reduces reliance on foreign suppliers, reinforces the resilience of Canada's ammunition supply chain, and provides the Canadian Armed Forces with rapid, reliable access to critical defence materiel needed to protect Canadians at home and abroad.
