Canada Backs Aerospace Innovation to Boost Security

Federal Economic Development Agency for Southern Ontario

FedDev Ontario invests $14.5 million for Kepler Communications and Dishion Limited to advance made‑in‑Canada defence capabilities

Canada's security and economic prosperity depend on strong domestic capabilities in critical technologies. The Government of Canada is committed to supporting innovative companies that strengthen our defence readiness, and create high‑quality jobs for Canadians.

Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced a combined investment of $14.5 million to accelerate the growth of two leading Canadian companies, strengthen their competitiveness in the defence sector and contribute to building Canadian sovereign capabilities in aerospace and space.

This includes a $7-million investment for Kepler Communications Inc., a Toronto‑based satellite telecommunications company that designs and builds satellites to deliver secure, resilient, and sovereign communications and data services between space and Earth. This investment builds on previous Government of Canada investments which supported the design and development of a low‑Earth‑orbit constellation and the manufacture of the first tranche of small satellites. Today's FedDev Ontario investment will help Kepler to advance its Tranche 1 (T1) satellite engineering and accelerate the commercialization of these capabilities. The company has already achieved major milestones-including designing and deploying its first satellites and demonstrating low latency, high‑speed, resilient communications. Through this project, the company will be able to scale from early development into market‑ready operations.

In January 2026, Kepler launched Tranche 1 of it's network, consisting of 10 optical communications satellites, with upcoming activities focused on demonstrating advanced network capabilities-such as Arctic communications, customer connectivity trials, and achieving full service‑ready operations. The investment will position Kepler to participate in Canada's Defence Enhanced Surveillance from Space Project as well as position Canada as an early mover in next-generation space and defence technologies, supporting both national needs and allied missions while building sovereign space capabilities.

Dishon Limited is receiving an investment of $7.5 million to support the company as it scales its production capabilities at its new 30,000 square-foot advanced manufacturing facility in Vaughan, through the adoption of state‑of‑the‑art machining and precision‑measurement equipment. This expansion will allow the company to scale production of complex, high-precision components and meet increased demand from key aerospace customers. This project will expand capabilities, improve competitiveness, and create a foundation for long-term growth in aerospace-military aviation, space, and satellite-as well as in low-carbon energy initiatives, including fusion energy markets.

The Government of Canada remains focused on building a strong and innovative aerospace and space industry that supports national security, drives economic growth, and delivers real benefits for Canadians.

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