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By Open Chronicle Staff | March 19, 2026
OTTAWA – In a move aimed at ending decades of reliance on foreign military suppliers, Defence Minister David McGuinty announced a landmark $1.4 billion investment on Wednesday to aggressively expand Canada’s domestic ammunition manufacturing capacity.
Speaking at a press conference in Brampton, Ont., McGuinty characterized the initiative as a cornerstone of national sovereignty, framed by a rapidly shifting global security landscape and the lessons learned from the “wake-up call” of recent international conflicts.
“The ability to produce our own ammunition is not optional; it’s essential,” McGuinty told reporters. “It strengthens our independence, protects us from global supply disruptions, and ensures that our armed forces have what they need, when they need it.”
The ‘Snooze Button’ Ends
The announcement follows years of criticism from defence experts who warned that Canada’s stockpiles were woefully inadequate for modern warfare. David Perry, president of the Canadian Global Affairs Institute, noted that following the 2022 invasion of Ukraine, Canada’s equipment shipments to Kyiv “exposed how inadequate that stock was to begin with.”
“Canada was totally unprepared to deal with a modern battlefield,” Perry said, adding that while the conflict in Ukraine served as a warning, Ottawa had effectively “kept hitting the snooze button” until now.
Key Investments and Job Creation
The $1.4 billion funding package, part of the newly launched Canadian Defence Industry Resilience (CDIR) Program, will be distributed across several high-priority projects:
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$305.4 Million for IMT Precision: Based in Ingersoll, Ont., this investment will establish a new facility to manufacture empty metal shells for 155mm artillery projectiles, a “basic building block” of modern combat currently in high demand globally. The project is expected to create 75 high-value jobs immediately, potentially rising to 400 at full production.
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$642 Million for High-Explosives: A major manufacturing facility will be established to load, assemble, and pack 155mm high-explosive projectiles.
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$57.9 Million for Propellant Charges: Funding is allocated for Canada’s first facility capable of producing M231/232 charges used in artillery.
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Quebec Expansion: Plans were also unveiled to boost the production of nitrocellulose, a critical chemical component for propellants and ammunition, within Quebec.
Geopolitical Context
The push for military self-sufficiency arrives as the Canadian government navigates complex international waters. During the briefing, McGuinty was pressed on Canada’s stance regarding the escalating conflict in Iran. The Minister was firm, stating that Canada was not consulted before the outbreak of hostilities and has “no intention” of participating in the prosecution of that war, despite having personnel stationed in the region.
The investment also signals Canada’s commitment to the NATO Defence Investment Pledge, with the government aiming to reach a defence spending target of 2% of GDP by the end of March, a goal McGuinty insisted the country is on track to achieve.
“These aren’t just investments. They’re building blocks of modern defence,” McGuinty said. “They are how we ensure that Canada is prepared, not just for today, but for the future.”