NATO soldiers use a CAESAR self-propelled howitzer in Cincu, Romania, on Feb. 9. Canada is one of dozens of NATO members looking to ramp up its ammunition production.Andrei Pungovschi/Getty Images
Ottawa is spending $1.4-billion to bolster Canada’s domestic ammunition production capacity through the establishment of new facilities to manufacture supplies such as artillery shells and nitrocellulose, a compound used in a range of military munitions.
Defence Minister David McGuinty said the funds will be divided between two companies: IMT Precision, based in Ingersoll, Ont., and General Dynamics Ordnance and Tactical Systems – Canada in Repentigny, Que., a subsidiary of the U.S. defence company. Both companies are part of Canada’s Munitions Supply Program, which was created in the 1970s and protects producers from competition.
The federal government is making the investment under its new Canadian Defence Industry Resilience program, which it announced in February as part of its $6.6-billion Defence Industrial Strategy. The funding announced Wednesday is included in that total. The program is meant to provide targeted support to Canadian businesses to increase production of specific defence-related goods.
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To start, Ottawa is focused on strengthening Canada’s ammunition and explosives sector, with goals such as beginning nitrocellulose production in 2029.
“We intend to first look after ourselves, make sure that we have what we need, then produce enough to be able to use it in a North American context, and then we’ll be able to provide allied ammunition needs as well across NATO,” Mr. McGuinty said in an interview.
Canada is quickly ramping up its defence spending, focused on high-priority sectors such as drones, ammunition and space technologies, as part of its goal to spend 5 per cent of gross domestic product on defence by 2035. It’s also one of dozens of NATO members looking to ramp up its ammunition production, after seeing how quickly supplies have been depleted in Ukraine and wanting to secure domestic access to the critical wartime supply chain. Canada does not currently produce nitrocellulose and has long relied on foreign suppliers for the compound.
“Many of the suppliers, including China, we don’t want to purchase from, we don’t want to be dependent on,” Mr. McGuinty said. “And so that, plus sanctions, in some cases, in terms of being able to actually get nitrocellulose, it’s very important for us to be able to create what we need for ourselves.”
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General Dynamics will spearhead nitrocellulose production in Canada using a $355.7-million investment from the federal government. Per a contribution agreement between the company and the government, this money will support the construction of a new factory. Within three to four years, the factory should reach full capacity, producing between 3,400 and 7,800 tonnes of nitrocellulose annually, depending on the grade, Mr. McGuinty said.
The U.S. subsidiary will also receive additional funding as part of the total $1.4-billion investment and per contribution agreements. Ottawa will give General Dynamics up to $642-million to build a new manufacturing facility dedicated to loading, assembling and packing NATO-standard 155-millimetre high-explosive projectiles, such as those used in howitzers. It will also provide up to $57.9-million to establish Canada’s first facility capable of loading, assembling and packing M231/232 charges, a type of propelling charges also used in 155mm artillery.
By 2028, General Dynamics’ facilities should be able to process 12,744 projectiles annually. By 2029, the goal is to scale up to 12,000 a month.
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In Ingersoll, IMT Precision will receive a $305.4-million direct investment, also per a contribution agreement with Ottawa, to manufacture the empty metal shells used in 155-millimetre artillery.
The new facility will be ready for production in roughly 2½ years, and reach full capacity in four years. Once complete, it will be capable of producing 144,000 M795 shells a year.
The facility for domestic supply will add to the company’s existing production lines for the U.S. Army. In October, 2024, the U.S. Army hosted a ribbon-cutting ceremony at the company’s Ingersoll facility, celebrating its anticipated production of 15,000 shell bodies a month.
The new Canadian facility is expected to create at least 75 full-time jobs, with the possibility of employment reaching 400 at full production. Months ago, in October, General Motors Co. ended production of Chevrolet BrightDrop electric parcel vans in Ingersoll, costing more than 1,100 hourly workers their jobs.
All of this production will go to Canada first, whether that’s in combat or in stockpiles, Mr. McGuinty said. Once Canada’s needs are met, only then will the newly created nitrocellulose and ammunition production lines supply other countries.
“We don’t have enough ammunition in this country. We need to make sure that we get what we need.”