The Government of Canada has announced a major investment of $1.4 billion to strengthen its domestic ammunition production capacity, as part of efforts to improve national security and reduce reliance on foreign suppliers. The announcement was highlighted by Joël Lightbound during an event in Repentigny.
The funding will be delivered through the Canadian Defence Industry Resilience Program (CDIR), which focuses on building a stronger and more self-reliant defence industry. The program aims to help companies expand production capacity, strengthen supply chains, and develop critical defence-related capabilities within Canada.
A significant portion of the investment will go to General Dynamics Ordnance and Tactical Systems for multiple projects in Quebec. These include the construction of a nitrocellulose production facility in Valleyfield, as well as new facilities for assembling and packing artillery charges and high-explosive projectiles at sites in Valleyfield and Le Gardeur. These developments are expected to restore key manufacturing capabilities that are essential for ammunition production.
In addition, the government is supporting IMT Precision in Ingersoll with financial assistance to build a facility for producing metal shells used in modern artillery systems. This move is intended to further enhance Canada’s ability to meet its defence needs independently.
Officials say the investment will not only strengthen Canada’s defence readiness but also deliver economic benefits. The projects are expected to create hundreds of jobs during construction and operation, while also supporting local industries and encouraging further investment in the defence sector. By increasing domestic production, Canada aims to ensure a stable and reliable supply of critical materials for the Canadian Armed Forces.
The initiative is part of Canada’s broader defence industrial strategy, which focuses on improving supply chain resilience and ensuring the country can respond effectively to evolving global security challenges. By expanding its domestic capabilities, Canada seeks to maintain greater control over essential defence resources and support long-term national security.
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