Canada to Invest $1 Billion in 155 mm Shell Production

Canada is investing CAD 1.4 billion (about $1 billion) to build four facilities to expand domestic production of 155 mm artillery shells.

The Canadian government announced the plan in a press release.

The investment is part of the Canadian Defence Industry Resilience (CDIR) program aimed at strengthening the country’s defense industrial base.

The program is designed to help companies expand production, develop sovereign defense capabilities, and address critical supply chain vulnerabilities. It also aims to boost domestic output of defense products and materials and secure key components and raw materials.

Under the program, the government signed three funding agreements with General Dynamics – Ordnance and Tactical Systems in Quebec:

• $355.7 million to build a nitrocellulose production facility at the Valleyfield site;
• up to $57.9 million to establish Canada’s first M231/232 propellant assembly and packaging facility for 155 mm artillery at the same site;
• up to $642 million to build a 155 mm high-explosive fragmentation shell assembly and packaging facility at the Le Gardeur site.

The government will also provide up to $305.4 million to IMT Precision in Ingersoll to build a new 155 mm artillery shell casing production facility.

Given existing and planned expansions in explosives production capacity, these investments will allow Canada to cover nearly the full production cycle for 155 mm shells domestically.