Ottawa earmarks C$1.4 billion to expand domestic ammunition production

By Tahani Elghazaly
Published March 18, 2026

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Canada’s government announced on Wednesday, March 18, 2026, a C$1.4 billion investment to expand domestic ammunition production through the Canadian Defence Industry Resilience Program, saying the move is necessary to strengthen the country’s defence industrial base and improve its ability to secure military supply at home amid global supply chain pressure.

The package includes up to C$305.4 million for IMT Precision in Ingersoll, Ontario, to build a new facility that will manufacture empty metal shells for modern 155 mm artillery projectiles. In Quebec, General Dynamics Ordnance and Tactical Systems received three contribution agreements: C$355.7 million for a nitrocellulose facility, up to C$57.9 million for Canada’s first plant capable of loading, assembling, and packing M231 and M232 charges used in 155 mm artillery, and up to C$642 million for a facility to load, assemble, and pack 155 mm high explosive projectiles.

Ottawa says the projects are intended to give the Canadian Armed Forces faster and more reliable access to critical defence materiel, while reducing dependence on foreign suppliers and reinforcing Canada’s role in North American and NATO supply chains. The Ontario project alone is expected to create at least 75 full time jobs, with that figure potentially rising to 400 at full production. The announcement also fits into a broader defence industrial strategy launched by Prime Minister Mark Carney on February 17, 2026, aimed at expanding Canadian industrial capacity and increasing the share of defence work awarded to Canadian firms.