TORONTO — The federal government announced new investments in Canada’s defence manufacturing sector Wednesday, including funding for a southwestern Ontario company to expand ammunition production, as officials highlighted shifting global security concerns.Speaking at IMT Precision in Ingersoll, Defence Minister David McGuinty said Ottawa will launch a new Canadian Defence Industry Resilience Program aimed at strengthening domestic production capacity.The program includes an initial commitment of up to $1.4 billion to expand Canada’s ammunition manufacturing capabilities, which McGuinty described as essential to national security.“Security cannot be taken for granted,” McGuinty said. “We have to be ready for today’s challenges and those still to come.”As part of the program, IMT Precision is expected to receive up to $306.4 million to build a new facility that will produce metal shells for 155-millimetre artillery projectiles. The project is expected to create hundreds of jobs, with officials estimating up to 400 positions at full production..The company, which has operated in Ingersoll for more than a century, manufactures components for the Canadian Armed Forces and international partners.McGuinty said the investment is intended to strengthen Canada’s domestic supply chains and reduce reliance on foreign production, while also supporting allied countries.Additional funding announced Wednesday includes $355.7 million for General Dynamics Ordnance and Tactical Systems in Quebec to produce nitrocellulose, a key component in ammunition, along with further investments for propellant charges and high-explosive projectiles.Officials said the combined measures are part of a broader defence industrial strategy released earlier this year.IMT Precision president Cheryl Hackney said the project reflects both government commitment and industry readiness to expand capacity.“Peace and stability cannot be taken for granted,” Hackney said. “Canada needs to be prepared for the realities of today’s world.”Hackney added that site selection for the new facility is still under review, with more details expected in the coming weeks.Local Members of Parliament and company representatives emphasized the economic impact of the investment, noting the potential for job creation and growth in the region’s manufacturing sector.During a question-and-answer session, McGuinty was also asked about reports of a missile strike involving Canadian Armed Forces personnel in the Middle East. He said the government does not comment on operational details for security reasons, but confirmed that Canadian personnel are “safe and accounted for.”McGuinty also reiterated that Canada is not participating in ongoing military actions in the region.On defence spending, the minister said Canada remains on track to meet NATO’s benchmark of spending two per cent of gross domestic product on defence by the end of March, rejecting suggestions the government is rushing to meet the target.He described the recent announcements as part of a longer-term plan to increase military investment and expand Canada’s defence industry.“This is not a last-minute spending effort,” McGuinty said. “This is the execution of a plan.”The minister also pointed to continued Canadian support for Ukraine, including recent shipments of armoured vehicles and ongoing co-ordination with NATO allies on military supplies.Construction timelines for the IMT facility have not been finalized, though federal officials said they aim to move forward as quickly as possible
