The federal government on Wednesday said it will spend $1.4 billion to boost Canada’s ammunition production, with Defence Minister David McGuinty calling it “essential” for Canada’s independence.
McGuinty said the launch of the Canadian Defence Industry Resilience Program will be part of Canada’s broader Defence Industrial Strategy, which Prime Minister Mark Carney announced last month.
“It’s a program that really means we’re trying to strengthen Canada’s ability to produce the defence equipment we need here at home,” he said.
“The ability to produce our own ammunition is not optional, it’s essential. It strengthens our independence, it protects us from global supply disruptions and ensures that our armed forces have what they need, when they need it.”
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Through this program, IMT Precision will receive up to $306.4 million to build a new facility producing metal shells for 155-millimetre artillery projectiles, McGuinty said.
“These are critical components used by our armed forces and our allies and in high demand globally, including in Ukraine or even including in Latvia, where we have 3,000 forward-deployed members of the Canadian Armed Forces, where Canada is commanding a 14-nation multinational brigade,” he said.
McGuinty also announced plans to boost production of nitrocellulose – a critical component in propellants and ammunition – in Quebec.
He also announced $57.8 million in spending to establish Canada’s first facility for making charges for the M-231 and M-232 assault rifles, in addition to a $642-million investment to manufacture 155-millimetre high-explosive projectiles.
“Taken together, these aren’t just investments. They’re building blocks of modern defence. They are how we ensure that Canada is prepared, not just for today, but for the future,” he said.
Responding to a question from reporters, McGuinty said Canada was on track to achieve its goal of spending two per cent of its GDP on defence by March 31.
“Stay tuned, and this is not a last-minute spending spree. This is the culmination of years of work,” he said.
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