Ontario Construction News staff writer
The federal government has revealed a plan to invest $1.4 billion in expanding Canada’s ammunition production capabilities, with new facilities being developed in Ontario and Quebec to lessen dependence on foreign sources.
This funding comes through the newly established Canadian Defence Industry Resilience Program, aimed at enhancing the manufacturing capacity for materials related to defense and addressing supply chain issues.
As part of this initiative, Ottawa will allocate up to $305.4 million to IMT Precision for constructing a facility in Ingersoll, Ont., that will manufacture empty metal shells used in 155mm artillery rounds. This project is anticipated to generate at least 75 full-time jobs, potentially increasing to 400 during peak production.
Defence Minister David Mc Guinty stated that this funding is “essential to national security” and will create new employment opportunities.
“The ability to produce our own ammunition is not optional. It’s essential,” he mentioned during a news conference on Wednesday.
Additonally, three more agreements have been finalized with General Dynamics Ordnance and Tactical Systems for projects located in Quebec. These agreements include $355.7 million for establishing a nitrocellulose plant, up to $57.9 million for a facility focused on loading and assembling artillery propellant charges, and up to $642 million designated for producing 155mm high-explosive projectiles.
The government asserts that these investments are geared towards boosting domestic production of crucial ammunition components while enhancing supply chain reliability. The projects are also expected to bolster Canada’s contribution within NATO by supporting North American supply capabilities.
This expenditure aligns with Ottawa’s larger defense industrial strategy which advocates for increased military investment over the next few years. Budget plans suggest an allocation of $6.6 billion over five years aimed at promoting growth in the defense sector, improving supply chains, and stockpile enhancement, alongside long-term goals of elevating defense spending as part of the economy.
The federal data indicates that Canada’s defense industry contributes roughly $10 billion annually to GDP and supports more than 81,000 jobs.
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