Strengthening Atlantic Canada’s defence capabilities in Lunenburg

From: Atlantic Canada Opportunities Agency

News release

From left to right : Scott Saunders, Director of Infrastructure at Stelia North America, Jessica Fancy, MP for South Shore—St. Margarets and Julien Montcru, CEO of Stelia North America

Regional Defence Investment Initiative supports businesses to grow, innovate and scale up for global defence opportunities

February 20, 2026 · Lunenburg, Nova Scotia · Atlantic Canada Opportunities Agency (ACOA)

The world is changing rapidly. The international rules-based order is fading, and technological change is expanding the fields of conflict. The Government of Canada is responding by rebuilding and reinvesting in the Canadian Armed Forces and strengthening the defence industrial base. Through Canada’s first Defence Industrial Strategy, the government is aligning long-term defence investments with industrial capability to support Canadian businesses, strengthen supply chains, and reinforce Canada’s role as a trusted ally. These generational investments will modernize Canada’s defence ecosystem, create good, well-paying jobs, and ensure the Canadian Armed Forces have the equipment they need to keep Canada safe, and sovereign.

In Atlantic Canada, this includes targeted investments that are strengthening Nova Scotia’s aerospace and defence sector by supporting local businesses, creating jobs, and building long-term industrial capacity.

Today, Jessica Fancy, Member of Parliament for South Shore—St. Margarets, announced a federal investment of more than $600,000 under the Regional Defence Investment Initiative (RDII) for an aerospace and defence company in Lunenburg. The announcement was made on behalf of the Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency.

This support will help Stelia North America purchase and install new advanced manufacturing and inspection equipment, such as CNC machines, a robotic sanding cell, a process oven, measuring equipment, and a 3D printer. The upgrades will allow the company to produce and test parts faster, create 15 full-time jobs, and better meet demand from global aerospace and defence customers.

As a pillar of Canada’s Defence Industrial Strategy, the RDII is building a strong, resilient defence industrial base by helping small and medium-sized businesses scale up, adopt advanced technologies, and integrate into domestic and international defence and security supply chains. These investments are strengthening Atlantic Canada’s industrial capacity, growing Nova Scotia’s role in Canada’s defence industry, and ensuring Canada has the capabilities it needs to respond to evolving global security challenges while supporting long-term economic growth. 

Quotes

“Good jobs here at home and Nova Scotia helping build the future of Canada’s Armed Forces. That is the real impact of this investment. We could not be prouder of the role Nova Scotia is playing in strengthening Canada’s defence capabilities. Through Canada’s new Defence Industrial Strategy, local companies are growing, innovating, and building more of what Canada needs at home to stay secure, sovereign, and economically strong.”

- The Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency

“Stelia is a great example of the innovation and skilled work happening right here in Lunenburg. This investment will help the company modernize its operations, support and develop its workforce, and continue growing in a highly competitive global industry. Through the Regional Defence Investment Initiative, we’re supporting local manufacturers, strengthening our regional economy, and making sure rural Nova Scotia remains a key player in the industry.”

- Jessica Fancy, Member of Parliament for South Shore—St. Margarets

“Over the past 35 years Stelia North America has developed capability to build composite components for the aerospace side of the Defense sector. It has become one of the main pillars of our business. However, we need re-investment to replace aging equipment and update our capabilities with the latest technologies. The RDII will allow us to accelerate that investment and transform timely opportunities into new equipment that we will be able to leverage to compete for additional work becoming available in the defense sector.”

- Scott Saunders, Infrastructure Director, Stelia North America

Quick facts

  • Stelia North America is an aerospace and defence company specializing in the design, development, and manufacturing of composites.

  • The $379.2 million Regional Defence Investment Initiative (RDII) is a three-year initiative delivered by Canada’s Regional Development Agencies (RDAs). 

  • Today’s announcement is part of ACOA’s $38.2 million allocation, over three years, under the Regional Defence Investment Initiative (RDII). 

  • This announcement builds on the more than $4 million Regional Defence Investment Initiative (RDII) investment announced to support nine projects in Nova Scotia on February 19, 2026.

  • With more than 200 firms in the defence industry, Atlantic Canada delivers advanced shipbuilding, aircraft and engine maintenance, sonar and acoustic systems, training and simulation, ground vehicle technologies and cyber resilience. 

  • Atlantic Canada is home to nearly 10,000 direct aerospace and defence jobs, representing 20% of national defence industry employment.


Associated links

Contacts

Lola Dandybaeva
Manager of Media Relations
Office of the Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency
lola.dandybaeva@justice.gc.ca

Media Relations   
Atlantic Canada Opportunities Agency  
mediaroom-salledesmedias@acoa-apeca.gc.ca  

Scott Saunders, P.ENG.
Infrastructure Director, Stelia North America
Scott. Saunders@Stelia-NorthAmerica.com

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2026-02-20