Ottawa will inject $1.4 billion in public funds into new facilities in Ingersoll, Ontario, and Repentigny, Quebec, to manufacture heavy munitions for artillery.
The funds will be split between IMT Precision and General Dynamics Ordnance and Tactical Systems–Canada. General Dynamics Ordnance and Tactical Systems, a subsidiary of major U.S. defence contractor General Dynamics, will receive the lion’s share.
The goal is to rapidly accelerate production of 155-millimetre shells used by howitzers and to begin producing nitrocellulose, a chemical compound used as a propellant in artillery shells.
China currently dominates the global market for nitrocellulose, on which NATO countries depend. Western countries have also sanctioned nitrocellulose companies that supply Russia, further reducing supply.
National Defence says it is seeking to have nitrocellulose production in place within three years.
Federal funds are partly intended for the production of M795 shells. Canadian manufacturers produce a variant of the 155 mm shell known as the M107. This shorter-range shell is less powerful and is used for training and to intimidate the enemy.
Defence Minister David McGuinty said this “initial $1.4 billion commitment” to the munitions supply chain was “essential to national security” and would create new jobs.
“These are critical components used by our armed forces and our allies, including in Ukraine or even Latvia,” the minister said at a press conference on Wednesday. “That’s why we need these munitions. That’s where we need them.”
Long-awaited funding
The Canadian Association of Defence and Security Industries (CADSI), which represents hundreds of domestic companies in the defence sector, has put intense pressure on the government to replenish the Canadian military’s ammunition stocks and convert domestic ammunition production lines.
“This is an issue that has been dragging on for years—really since the beginning of the war in Ukraine,” Christyn Cianfarani, the association’s CEO, said in an email. “So it’s good to see they are beginning to implement this.”
Canada has struggled to rebuild its ammunition stockpiles and has donated significant quantities to Ukraine, which badly needs them for its war against Russia.
Christian Leuprecht, a professor at the Royal Military College of Canada and Queen’s University, noted that this was a good start, but that the federal government still does not have a strong, sovereign supply chain capable of sustaining it for more than a few days in the event of armed conflict.
“We should have dealt with this a long time ago. Everyone wants to talk about drones, but these are essential items the military desperately needs,” Leuprecht said.
He added that Ottawa must stop hesitating to sign long-term ammunition contracts.
“Canada is known for saying, ‘We’ll order 3,000 shells this year and 5,000 next year.’ If you’re a company, you’re not going to invest hundreds of millions of dollars if you have no idea how much you’ll be able to sell,” Leuprecht explained.
McGuinty unveiled the funding at an IMT plant in Ingersoll, a community still reeling from layoffs at General Motors’ CAMI Assembly plant. He promised the new facility would create about 400 jobs.
The defence minister did not answer when asked whether he was considering converting the CAMI plant to manufacture military vehicles.
He did, however, acknowledge that the federal government is in talks with major automakers about converting auto plants to defence production, and said he would “say more about that in due course.”
Under the funding breakdown, IMT will receive up to $305 million for a new plant to produce metal casings for 155 mm projectiles.
General Dynamics Canada will have access to just over $1 billion in funding.
The largest portion of that amount—$642 million—will go toward a plant to manufacture 155 mm high-explosive projectiles.
An additional $355.7 million will be used to establish the nitrocellulose plant, while $57.9 million has been set aside to create the first Canadian plant manufacturing the M231 and M232 propelling charges used in 155 mm artillery shells.
The funding falls under the new Canadian Defence Industrial Resilience Program, part of the Liberal government’s new defence industrial strategy aimed at strengthening domestic defence production capacity.
The Liberals plan to highlight parts of this strategy through a series of funding announcements scheduled for this week.
REF: Ottawa annonce un investissement dans des usines de munitions au Québec et en Ontario
