In the ever-evolving global threat landscape, Canada must strengthen domestic capabilities to protect sovereignty, safeguard national interests, and support long-term security.

Minister of National Defence, David J. McGuinty, Wednesday 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 which include, $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.