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Minister McGuinty announces investment of $1.4 billion into Domestic Ammunition Production
From:
News release
March 18, 2026 – Ingersoll, Ontario – National Defence / Canadian Armed Forces
In the ever-evolving global threat landscape, Canada must strengthen domestic capabilities to protect sovereignty, safeguard national interests, and support long-term security.
Today, the Honourable David J. McGuinty, Minister of National Defence announced an investment of $1.4 billion to expand Canada’s domestic ammunition production capacity.
This investment is possible due to the launch of the Canadian Defence Industry Resilience (CDIR) Program which will strengthen Canada’s defence industrial base by helping companies increase production capacity, build sovereign defence capabilities, and address critical supply chain vulnerabilities.
The CDIR Program will enhance Canada’s ability to produce defence‑related products and materials domestically, while improving the resilience of industrial supply chains for key components and raw materials.
Under the CDIR Program, Minister McGuinty announced that the Government of Canada will provide up to $305.4 million in financial assistance to IMT Precision in Ingersoll, Ontario. This will establish a new manufacturing facility capable of producing empty metal shells for more modern and effective 155mm artillery projectiles, which will increase Canada’s sovereign ammunition production capacity reducing dependency on foreign suppliers. The facility will also act as a vital backup to North American supply capabilities, strengthening Canada’s position within North Atlantic Treaty Organization (NATO).
The new facility will bring significant economic benefits to the local area, including the creation of at least 75 full‑time, high‑value jobs and up to 400 jobs at full production.
Three additional contribution agreements have also been awarded under the CDIR to General Dynamics - Ordnance and Tactical Systems in Quebec:
$355.7 million to construct a nitrocellulose facility;
up to $57.9 million to establish Canada’s first facility capable of loading, assembling, and packing M231/232 charges used in 155mm artillery; and
up to $642 million to establish a manufacturing facility to load, assemble, and pack 155mm High‑Explosive projectiles.
These investments, guided by Canada’s first Security, Sovereignty, Prosperity: Canada’s Defence Industrial Strategy, will strengthen Canada’s sovereign ammunition production capacity by expanding domestic manufacturing of key artillery charge components, and create skilled jobs in the region. This reduces reliance on foreign suppliers, reinforces the resilience of Canada’s ammunition supply chain, and provides the Canadian Armed Forces with rapid, reliable access to critical defence materiel needed to protect Canadians at home and abroad.
Quotes
“Today’s investments reflect Canada’s commitment to strengthening our sovereign ammunition production and reinforcing the resilience of our defence industrial base. By supporting new facilities at IMT Precision and General Dynamics - Ordnance and Tactical Systems, we are building critical capabilities here at home, reducing reliance on foreign sources, and providing the Canadian Armed Forces with dependable access to the materiel they need. These projects demonstrate how the Defence Industrial Strategy and the Canadian Defence Industry Resilience Program are enabling Canadian industry to grow, innovate, and deliver the capabilities essential to our national security.”
The Honourable David J. McGuinty, Minister of National Defence
“Today’s announcement is a major win for our region and for Southwestern Ontario. Investments like this strengthen our local economy, create good, skilled jobs, and highlights the critical role our region plays in supporting Canada’s defence capabilities. Our community has a long history of manufacturing excellence, and today we’re building on that legacy while contributing to Canada’s security at home and abroad.”
Arielle Kayabaga, Member of Parliament for London West
“This announcement highlights the critical role southwestern Ontario plays in strengthening Canada’s defence and economic security. By investing in our region’s defence industrial base, we are reinforcing supply chains while creating good-paying jobs for local workers. These investments help build a more resilient, self-sufficient Canada that is better prepared to meet evolving global challenges.”
Peter Fragiskatos, Member of Parliament for London Centre
“Artillery production is no longer just a defense manufacturing issue- it’s a national security capability and I’m glad IMT is able to support that capability for our nation and its allies.”
Cheryl Hacking, Chief Executive Officer, IMT Precision
Quick facts
The Defence Industrial Strategy builds on the Government of Canada’s commitment to increase defence investment to 2% of gross domestic product (GDP) or approximately $63 billion, in 2025-26, and to 5% of GDP by 2035.
Budget 2025 outlined initial investments to support Canada’s defence industrial base. This begins with an investment of $6.6 billion over five years on a cash basis, starting in 2025-26, to accelerate innovation, stabilize supply chains, expand critical stockpiles, and help Canadian businesses scale production and compete globally.
Increasing investments in core military capabilities, building up our domestic defence industry, and dual-use investments are putting Canada on a pathway to meet the NATO Defence Investment Pledge to invest 5% of GDP in defence by 2035.
The Canadian defence industry contributes nearly $10 billion to the Canada’s GDP and supports over 81,000 jobs.
The CDIR program supports Government of Canada procurement priorities such as the Buy Canada Policy to enable Canadian industry to benefit from defence investments.
Through the CDIR Program, the Government of Canada will provide initial funding to support eligible industrial partners on immediate priorities. As additional funding becomes available, Canada will work with industry partners to share information about future opportunities on the CDIR website: canada.ca/en/department….
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