Canada invests $1.4 billion to expand domestic ammunition production and strengthen defence industrial base

The announcement was made on April 8 in Repentigny, Quebec. It reflects a broader strategy to enhance Canada’s ability to produce critical defence materials domestically.

Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, outlined the strategic importance of the initiative. “A strong defence industrial base is not just about security, it is about sovereignty.”

“Through the Canadian Defence Industry Resilience Program, we are investing $1.4 billion in domestic ammunition production in Valleyfield and Le Gardeur, ensuring that Canadian workers build the capabilities our Armed Forces depend on, that our supply chains are resilient, and that Canada never has to look abroad for what it can produce at home,” Lightbound added.

Under the programme, contribution agreements have been awarded to General Dynamics Ordnance and Tactical Systems in Quebec. These include funding to construct a nitrocellulose facility and establish production lines for artillery charges and 155 mm high explosive projectiles.

The investment is expected to restore critical manufacturing capabilities and strengthen supply chains. It will also support increased production capacity for munitions during periods of elevated demand.

Ian Thibault, Senior Vice President and General Manager at General Dynamics Ordnance and Tactical Systems, highlighted the significance of the investment. “It is an honor to support Canada’s defence priorities and our Canadian Armed Forces at such a pivotal moment.”

“This investment represents a meaningful step toward strengthening Canada’s sovereign munitions capability, enhancing supply chain resilience, and ensuring readiness. At GDOTS Canada, we are proud to contribute our expertise and enhance our capabilities, helping to deliver critical systems that Canada and our allies depend on,” Thibault added.

Additional funding will support the development of new manufacturing capabilities in Ontario. Financial assistance will be provided to IMT Precision to establish a facility producing empty metal shells for modern artillery systems.

The projects are expected to create more than 350 jobs during construction and related activities. They will also contribute to long-term economic growth and workforce development in the region.

The investment aligns with Canada’s Defence Industrial Strategy. It is intended to reduce reliance on foreign suppliers and improve resilience in critical supply chains.

Officials said the initiative supports the Canadian Armed Forces by ensuring reliable access to essential defence materials. It also reinforces Canada’s ability to respond to evolving global security challenges.