Federal investment fuels Ingersoll, Ont. manufacturer, bolstering Canadian ammunition production

CTV’s Gerry Dewan with a $1.4 billion announcement from Canada’s federal defence minister regarding local ammunition production.

Defence Minister David McGuinty announced a significant federal investment of $1.4 billion Wednesday, aimed at bolstering Canada’s domestic ammunition production capacity and strengthening its defence industrial base.

As part of this initiative, IMT Precision in Ingersoll will receive up to $306.4 million to establish a new manufacturing facility for crucial artillery components.

The funding, provided through the newly created Canadian Defence Industry Resilience (CDIR) Program, will enable IMT Precision to expand its operations by building a state-of-the-art plant dedicated to producing metal shells for 155-millimeter artillery projectiles.

This expansion is critical for increasing Canada’s sovereign ammunition production capacity and reducing dependence on foreign suppliers.

“Canada needs to be prepared for the realities of today’s world, and IMT is ready to do its part to help reequip the Canadian Armed Forces, our partners and NATO and other allies with the weapons they need to do their jobs safely and effectively,” stated IMT Precision CEO Cheryl Hacking during the announcement.

The investment comes as global demand for defence material, particularly for allies in regions like Ukraine and Latvia where Canadian troops are deployed, remains high.

“These are critical components used by our armed forces and our allies and are in high demand globally,” McGuinty emphasized, underscoring the government’s commitment to ensuring the Canadian Armed Forces have reliable access to necessary tools.

IMT Precision, which currently employs more than 500 staff and specializes in advanced CNC machining for various sectors including auto and aerospace, will see the new facility create at least 300 full-time jobs, with the potential for up to 400 positions at full production.

This initiative builds on the company’s recent 90,000-square-foot expansion last spring, which increased production of shells for the U.S. military. The new facility will primarily focus on increasing output for the Canadian military.

Hacking notes the site selection for the new facility is currently under review, with further details anticipated in the coming weeks.

The broader $1.4 billion CDIR Program also includes substantial investments in Quebec.

General Dynamics - Ordnance and Tactical Systems will receive $355.7 million to construct a nitrocellulose facility, up to $57.9 million to establish Canada’s first facility for loading, assembling, and packing M231/232 charges, and up to $642 million to build a manufacturing plant for loading, assembling, and packing 155mm high-explosive projectiles.

A defence minister statement says the strategic investments, guided by Canada’s Defence Industrial Strategy, aim to enhance domestic manufacturing capabilities, create skilled jobs, and ensure the Canadian Armed Forces and allies possess the critical defence material required for security at home and abroad.