Minister Lightbound underscores investment of $1.4 billion into Domestic Ammunition Production

News release

April 8, 2026 – Repentigny, Quebec – National Defence / Canadian Armed Forces

As the global threat environment continues to evolve, the Government of Canada remains committed to making targeted investments to strengthen Canada’s defence industry and support long-term security.

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, highlighted a recent investment of $1.4 billion to expand Canada’s domestic ammunition production capacity.

This investment is possible through 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 this program, the Government of Canada has awarded three contribution agreements to General Dynamics – Ordnance and Tactical Systems of Quebec:

$355.7 million to construct a nitrocellulose facility at the company’s Valleyfield site;
up to $57.9 million to establish Canada’s first facility capable of loading, assembling, and packing M231/232 charges used in 155mm artillery at the company’s Valleyfield site; and
up to $642 million to establish a manufacturing facility to load, assemble, and pack 155mm High‑Explosive projectiles at the company’s Le Gardeur site.

In addition to restoring the critical ability to manufacture nitrocellulose in Valleyfield, these agreements will generate significant economic benefits for the region. They are expected to create upwards of 356 jobs during construction and throughout indirect employment, strengthen Canadian supply chains through domestic sourcing, and increase Canada’s capacity to scale munitions and propellant manufacturing during times of elevated demand. Together, these agreements will help attract further defence-sector investments and support innovation and workforce development through partnerships with educational institutions, contributing to long-term regional economic growth.

As previously announced by Minister McGuinty, the Government of Canada will also 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.

These investments, guided by Canada’s first Security, Sovereignty, Prosperity: Canada’s Defence Industrial Strategy, will strengthen Canada’s sovereign ammunition production capacity by expanding domestic manufacturing of key artillery charge components, and create skilled jobs in the region. This reduces reliance on foreign suppliers, reinforces the resilience of Canada’s ammunition supply chain, and provides the Canadian Armed Forces with rapid, reliable access to critical defence materiel needed to protect Canadians at home and abroad.

Quotes

“A strong defence industrial base is not just about security, it is about sovereignty. Through the Canadian Defence Industry Resilience Program, we are investing $1.4 billion in domestic ammunition production in Valleyfield and Le Gardeur, ensuring that Canadian workers build the capabilities our Armed Forces depend on, that our supply chains are resilient, and that Canada never has to look abroad for what it can produce at home.”

The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant

“It is an honor to support Canada’s defence priorities and our Canadian Armed Forces at such a pivotal moment. This investment represents a meaningful step toward strengthening Canada’s sovereign munitions capability, enhancing supply chain resilience, and ensuring readiness. At GDOTS Canada, we are proud to contribute our expertise and enhance our capabilities, helping to deliver critical systems that Canada and our allies depend on.”

Ian Thibault, Senior Vice President and General Manager, General Dynamics Ordnance and Tactical Systems

Quick facts

Following the Government of Canada’s recent achievement in reaching its 2% defence expenditure target, the Defence Industrial Strategy will continue to build on Canada’s commitment to increasing its defence investment to 5% of gross domestic product by 2035.
Budget 2025 outlined initial investments to support Canada’s defence industrial base. This begins with an investment of $6.6 billion over five years on a cash basis, starting in 2025-26, to accelerate innovation, stabilize supply chains, expand critical stockpiles, and help Canadian businesses scale production and compete globally.
Increasing investments in core military capabilities, building up our domestic defence industry, and dual-use investments are putting Canada on a pathway to meet the NATO Defence Investment Pledge to invest 5% of GDP in defence by 2035.
The Canadian defence industry contributes nearly $10 billion to the Canada’s GDP and supports over 81,000 jobs.
The CDIR program supports Government of Canada procurement priorities such as the Buy Canada Policy to enable Canadian industry to benefit from defence investments.
Through the CDIR Program, the Government of Canada will provide initial funding to support eligible industrial partners on immediate priorities. As additional funding becomes available, Canada will work with industry partners to share information about future opportunities on the CDIR website.

Associated links

Contacts

Maya Ouferhat
Press Secretary
Office of the Minister of National Defence
maya.ouferhat@forces.gc.ca

Laurence Gagnon
Director of Communications and Issues
Office of the Quebec Lieutenant
343-597-6142
Laurence.gagnon@lieutenant.canada.ca

Media Relations
Department of National Defence
613-904-3333
mlo-blm@forces.gc.ca

Page details

2026-04-08