OTTAWA, — April 12, 2026 : The Government of Canada has announced a $1.4 billion investment to expand domestic ammunition production capacity and strengthen defence supply chains, as part of a broader effort to enhance national security and industrial resilience.
The funding will be delivered through the Canadian Defence Industry Resilience (CDIR) Program, a newly established initiative designed to support industrial growth, develop new manufacturing infrastructure, and reduce reliance on foreign suppliers for critical munitions components. The investment will primarily support projects in Quebec and Ontario, focusing on key elements of 155mm artillery ammunition production.
The announcement follows earlier commitments made in March 2026 by Minister of National Defence David J. McGuinty in Ingersoll, Ontario, and aligns with the federal government’s defence industrial strategy titled “Security, Sovereignty, Prosperity: Canada’s Defence Industrial Strategy.” The strategy outlines plans to address supply chain vulnerabilities, expand domestic production in priority sectors, and support long-term economic and defence objectives.
Strategic Announcements in Quebec
On April 8, 2026, in Repentigny, Quebec, Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, outlined the objectives of the investment and its role in strengthening Canada’s defence industrial base.
The minister stated that the initiative is intended to ensure that Canadian workers develop and sustain the capabilities required by the Canadian Armed Forces, while also improving supply chain resilience and reducing dependence on external sources for essential defence materials.
A significant portion of the funding—totalling just over $1 billion—will be allocated through contribution agreements to General Dynamics Ordnance and Tactical Systems – Canada (GDOTS) for three projects in Quebec.
Up to $642 million will be used to establish a new facility at the company’s Le Gardeur site for loading, assembling, and packing 155mm high-explosive projectiles. This facility is expected to support increased production capacity during periods of elevated demand.
An additional $355.7 million has been allocated to construct a nitrocellulose production facility at GDOTS’ Valleyfield site. Nitrocellulose is a key energetic material used as a propellant in artillery ammunition and other munitions. The facility is expected to reach full operational capacity within three to four years and produce between 3,400 and 7,800 tonnes annually, depending on the grade.
A further investment of up to $57.9 million will establish Canada’s first facility capable of loading, assembling, and packing M231 and M232 propelling charges for 155mm artillery. This facility will also be located in Valleyfield.
Ian Thibault, Senior Vice President and General Manager at GDOTS Canada, stated that the agreements support Canada’s efforts to strengthen sovereign munitions capability, enhance supply chain resilience, and maintain operational readiness for both domestic forces and allied requirements.
Ontario Manufacturing Expansion
In Ontario, the federal government will provide up to $305.4 million in financial assistance to IMT Precision in Ingersoll. The funding will support the construction of a new manufacturing facility dedicated to producing empty metal shells, or cartridge cases, used in modern 155mm artillery systems.
The Ontario project is intended to increase Canada’s sovereign production capacity while also serving as a complementary capability within North American supply chains.
Addressing Supply Chain Gaps
The investment responds to increased global demand for artillery ammunition and supply chain constraints affecting key materials, including propellants such as nitrocellulose. Canadian officials indicated that the new facilities will enable surge production during periods of high demand and ensure more consistent access to essential materiel.
The establishment of domestic nitrocellulose production represents a notable development, as Canada has previously relied on international suppliers for this component. The new capability is expected to reduce exposure to global bottlenecks and improve supply stability.
General Dynamics Ordnance and Tactical Systems – Canada operates under the federal Munitions Supply Program, which has supported domestic ammunition production since the 1970s. The new projects expand on this framework by adding additional manufacturing capacity and new production capabilities.
Economic Impact and Employment
Federal officials stated that the projects will contribute to economic growth and workforce development in both Quebec and Ontario. The GDOTS projects in Quebec are expected to create more than 350 jobs during construction and related activities.
The IMT Precision facility in Ingersoll is projected to create at least 75 full-time skilled positions initially, with the potential to expand to between 300 and 400 jobs once the facility reaches full production capacity.
Program Implementation and Future Expansion
The Canadian Defence Industry Resilience Program is intended to prioritize immediate production requirements while supporting long-term industrial development. Officials indicated that additional funding may be made available in the future to help Canadian companies scale production capacity and compete in global defence markets.
The initiative also supports Canada’s commitments to allied defence frameworks, including NATO, by improving the country’s ability to supply munitions and related components.
No specific timeline has been provided for full operational status of all facilities beyond the three- to four-year target for the nitrocellulose plant. The projects are expected to be implemented in phases as construction and production capabilities are developed.
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