In an increasingly volatile global security environment, Canada is making a decisive move to strengthen one of the most fundamental pillars of national defence: ammunition production.

Standing in Ingersoll, Ontario, at the heart of a region long defined by manufacturing excellence, the Honourable David J. McGuinty, Minister of National Defence, announced a sweeping $1.4 billion investment to expand the country’s domestic ammunition production capacity—marking a significant step forward in Canada’s push for greater sovereignty, resilience, and industrial readiness.

At the centre of this effort is the newly launched Canadian Defence Industry Resilience (CDIR) Program, a cornerstone initiative designed to reinforce Canada’s defence industrial base. The program aims to help domestic companies scale production, address supply chain vulnerabilities, and build the sovereign capabilities required to meet both national and allied demands.

Building Sovereign Firepower at Home

The announcement underscores a clear strategic shift: ensuring that Canada can produce critical defence materiel within its own borders, reducing reliance on foreign suppliers while strengthening its role within allied frameworks such as NATO.

A key component of the investment is up to $305.4 million in financial support for IMT Precision in Ingersoll. This funding will enable the construction of a new manufacturing facility dedicated to producing empty metal shells for modern 155mm artillery projectiles—an essential component of contemporary land warfare systems.

Once operational, the facility will not only increase Canada’s sovereign ammunition production capacity but also serve as a vital backup for North American supply chains. The economic impact is equally significant, with at least 75 high-value full-time jobs expected initially, scaling up to as many as 400 positions at full production.

“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,” stated Cheryl Hacking, Chief Executive Officer, IMT Precision.

A National Supply Chain Takes Shape

Beyond Ingersoll, the federal government is making parallel investments in Quebec through three major contribution agreements with General Dynamics – Ordnance and Tactical Systems, collectively aimed at strengthening Canada’s end-to-end ammunition supply chain.

These include:

  • $355.7 million to construct a nitrocellulose facility—a critical material used in propellants
  • Up to $57.9 million to establish Canada’s first facility capable of loading, assembling, and packing M231/232 charges for 155mm artillery
  • Up to $642 million to develop a facility for loading, assembling, and packing 155mm high-explosive projectiles

Together, these investments represent a comprehensive approach to domestic ammunition production, spanning raw materials, component manufacturing, and final assembly.

From Policy to Production

The initiative is guided by Security, Sovereignty, Prosperity: Canada’s Defence Industrial Strategy, which positions domestic capability development as a national priority. Through the CDIR Program, the government is translating policy into tangible industrial capacity—ensuring that Canada can sustain its defence requirements while contributing meaningfully to allied operations.

“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,” conveyed the Honourable David J. McGuinty, Minister of National Defence.

Regional Strength, National Impact

For Southwestern Ontario, the announcement represents more than just a defence investment—it is a reaffirmation of the region’s role as a cornerstone of Canada’s industrial and economic strength.

“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,” said 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,” expressed Peter Fragiskatos, Member of Parliament for London Centre.

A Strategic Reset for a New Era

As global demand for ammunition surges and supply chains face increasing pressure, Canada’s investment signals a broader recalibration—one that places domestic production, industrial resilience, and allied interoperability at the forefront. By building capacity across the full ammunition lifecycle—from raw materials to finished munitions—Canada is positioning itself not only to meet its own defence needs but to contribute more robustly to collective security efforts.

In doing so, the country is reinforcing a simple but critical principle: in an uncertain world, sovereignty begins at home.