TORONTO — The federal government announced a major investment in Canada’s defence sector Thursday, awarding a contract to Ontario-based Colt Canada to supply new assault rifles to the Canadian Armed Forces, as part of a broader push to modernize military equipment and expand domestic production.Speaking at a press conference in Kitchener, Defence Minister David McGuinty said the procurement reflects a shift in Canada’s defence posture amid what he described as a rapidly changing global security environment.“This is a moment of very profound change,” McGuinty said. “The world is shifting in ways that are faster, more complex, more uncertain than we’ve seen in decades.”The contract, awarded through the newly established Defence Investment Agency, will see Colt Canada supply up to 65,402 modular assault rifle systems under the Canadian Modular Assault Rifle Project..Officials said the current C7 and C8 rifles used by Canadian troops have been in service for more than three decades and are due for replacement.Secretary of State for Defence Procurement Stephen Fuhrer said the first phase of the project will deliver 30,000 general service rifles over three years, with an estimated value of $307 million. A second phase will include additional general service rifles and more than 16,000 variants designed for frontline combat roles.Fuhrer said the procurement process was streamlined under the new agency, which consolidates defence purchasing functions that were previously spread across multiple federal departments.“We can’t take years and years to deliver things,” he said. “They need it now, and that’s what we’re going to do.”The announcement is part of a broader defence industrial strategy unveiled by the federal government in recent months. The plan aims to increase domestic defence production, reduce reliance on foreign suppliers and boost economic activity tied to military spending.McGuinty said the government plans to spend $450 billion on defence over the next nine years, calling it the largest investment of its kind in Canadian history..The strategy includes targets to direct 70% of defence procurement spending to Canadian companies and increase defence exports by 50%. Officials also project the creation of more than 125,000 jobs over the next decade.As part of the Colt Canada contract, the company has committed to sourcing approximately 80% of the rifle components domestically. It also plans to expand its workforce from about 130 employees to more than 200.Government officials said the project is expected to contribute roughly $10 million annually to Canada’s GDP over the next five years, with additional economic benefits through supply chains and exports.McGuinty emphasized the importance of strengthening Canada’s domestic defence industry, describing munitions production as a “sovereign capability.”“We’ll no longer rely on outsourcing the majority of our defence production,” he said. “Instead, we’re rebuilding it here.”The announcement follows other recent federal investments in ammunition and materials production facilities, as Ottawa moves to increase military readiness and align with NATO spending commitments.Canada has pledged to meet the alliance’s target of spending 2% of GDP on defence in the near term, with longer-term plans to reach higher levels of investment by 2035.Officials said the new rifles will incorporate decades of technological advancements and are intended to support both regular and frontline units across a range of operational environments.
