The Government of Canada has announced a major investment of $1.4 billion to expand the country’s domestic ammunition production capacity as part of efforts to strengthen national security and defence capabilities. The announcement was made by David J. McGuinty, Canada’s Minister of National Defence, who emphasized the need to enhance domestic manufacturing and reduce reliance on foreign suppliers in an increasingly complex global security environment.
The investment is being made through the launch of the Canadian Defence Industry Resilience Program, an initiative designed to reinforce Canada’s defence industrial base. The programme will support companies in increasing production capacity, building sovereign defence capabilities and addressing vulnerabilities in critical supply chains. By expanding domestic manufacturing of defence-related products and materials, the programme aims to improve the resilience of supply chains for key components and raw materials while ensuring the country can respond more effectively to emerging threats.
As part of the initiative, the Government of Canada will provide up to $305.4 million in financial assistance to IMT Precision to establish a new manufacturing facility in Ingersoll, Ontario. The facility will produce empty metal shells used in modern 155mm artillery projectiles, increasing Canada’s domestic ammunition production and serving as an important backup for North American supply capabilities. Officials say the project will strengthen the country’s position within the North Atlantic Treaty Organization while also bringing economic benefits to the region, including the creation of at least 75 full-time jobs and potentially up to 400 positions once the facility reaches full production.
Additional investments have also been allocated to General Dynamics Ordnance and Tactical Systems in Quebec under the same programme. These agreements include funding to construct a nitrocellulose facility, establish Canada’s first facility capable of loading and assembling charges used in 155mm artillery, and develop a manufacturing plant to load, assemble and pack high-explosive projectiles. Together, these projects aim to expand domestic production of critical artillery components and reinforce the resilience of Canada’s ammunition supply chain.
The investments align with Canada’s defence industrial strategy, which focuses on strengthening sovereign manufacturing capabilities, supporting skilled employment and ensuring the Canadian Armed Forces have reliable access to essential defence equipment needed to protect the country and support international commitments.
