Canadian and Design Construction writer
The federal government has announced $1.4 billion to expand Canada’s domestic ammunition production, including new facilities in Ontario and Quebec aimed at reducing reliance on foreign suppliers.
The funding flows through the newly launched Canadian Defence Industry Resilience Program, which is intended to increase manufacturing capacity for defence-related materials and address supply chain gaps.
As part of the program, Ottawa will provide up to $305.4 million to IMT Precision to build a facility in Ingersoll, Ont., to produce empty metal shells used in 155mm artillery projectiles. The project is expected to create at least 75 full-time jobs, with employment potentially rising to 400 at full production.
Defence Minister David McGuinty said the funding is “essential to national security” and will lead to new jobs.
“The ability to produce our own ammunition is not optional. It’s essential,” he said at a Wednesday news conference.
Three additional agreements have been signed with General Dynamics Ordnance and Tactical Systems for projects in Quebec. These include $355.7 million for a nitrocellulose plant, up to $57.9 million for a facility to load and assemble artillery propellant charges, and up to $642 million for a plant to produce 155mm high-explosive projectiles.
The government says the investments are intended to expand domestic production of key ammunition components and improve supply chain reliability. The projects are also expected to support Canada’s role within NATO by contributing to North American supply capacity.
The spending is tied to Ottawa’s broader defence industrial strategy, which calls for increased military investment in the coming years. Budget plans include $6.6 billion over five years to support defence industry growth, supply chains and stockpiles, alongside a longer-term goal of increasing defence spending as a share of the economy.
According to federal figures, Canada’s defence industry contributes about $10 billion annually to GDP and supports more than 81,000 jobs.
The federal money is going in part to production of M795 shells. Canadian manufacturers produce a variant of the 155 mm shell known as the M107, a shorter-range and lower-power shell used for training and enemy harassment.
Spending is tied to Ottawa’s broader defence industrial strategy, which calls for increased military investment in the coming years. Budget plans include $6.6 billion over five years to support defence industry growth, supply chains and stockpiles, alongside a longer-term goal of increasing defence spending as a share of the economy.
According to federal figures, Canada’s defence industry contributes about $10 billion annually to GDP and supports more than 81,000 jobs.
