Ingersoll company lands Canadian military contract

Canada’s Minister of Defence, David McGuinty, and Secretary of State, Stephen Fuhr, are seen at a funding announcement in Kitchener last week. Ingersoll’s IMT Precision was the site of another event the day before where the company received over $300 million to build a new facility to manufacture artillery shells. (Lee Griffi photo)

Lee Griffi, Editor

A pair of Canada’s top military officials were in Ingersoll last week for a major funding announcement at a weapons maker. Secretary of State Stephen Fuhr and Minister of Defence David McGuinty announced the awarding of a Defence Investment Agency contract to IMT Precision.

The government will provide up to $305.4 million in financial assistance to the company to establish a new manufacturing facility capable of producing empty metal shells for 155mm artillery projectiles. The government said the investment will increase Canada’s sovereign ammunition production capacity, reducing dependency on foreign suppliers. It will also act as a vital backup to North American supply capabilities, strengthening Canada’s position within NATO.

The new facility is expected to create at least 75 full time, high value jobs and up to 400 jobs at full production.

"The ability to produce our own ammunition is not optional. It's essential," said McGuinty. “The move will protect the country from global supply disruptions, supply the armed forces with what it needs, and create jobs in communities like Ingersoll,” he added.

While the majority of the funding will go towards a new operation, McGuinty explained IMT will have some say going forward.

“We're going to leave it to the company. We've been in discussions and negotiations now for some time. We're going to leave it to the smart people who run IMT and the folks on the floor to decide how they want to maneuver, but they have timelines, they have deadlines, and they have growth plans.”

The local planning process is already underway and the government is hopeful production will begin within two years.

“I think they're going to be moving quite quickly. We need this yesterday. We have an ammunition shortage and we need more domestic capacities. There have also been some challenges with acquiring the ammunition that they're building because of restrictions on China, restrictions on other suppliers from whom we don't buy without the same values. This is very much about lifting up our own internal capacity and preparing IMT to conquer global markets,” he explained.

Over 1,000 jobs were lost when CAMI recently shuttered its production of EV delivery vans recently, something McGuinty said his government is very aware of.

“It turns out that folks who have been working in car plant or car part settings tend to be very well trained, very, very capable, and easily brought into operations like this. That's exactly a source of labour and expertise that we're encouraging the companies to utilize. They're looking at that pool to pull people into their operations as they expand.”

Over 1,000 jobs were lost when CAMI recently shuttered its production of EV delivery vans, something McGuinty said his government is well aware of. The Echo asked if the government was considering repurposing the massive plant for defence purposes.

“It's under consideration. I can't go much further than that because it's early days. We're trying to be very fleet-footed and quick here now. We are as fleet-footed now as we perhaps have ever been.”

Along with increasing capacity for the Canadian military, the government is looking to have domestic producers enter the export market. McGuinty said the strategy is gaining momentum.

“What can they sell abroad? How many other contracts can they obtain while actually giving us what we need in Canada and building up our capacity? That's the big goal here and it seems to be working. Companies are aligning with us. There's a huge excitement. People are flocking to the opportunities. And the good news, too, is the money's following.”

Secretary of State Fuhr said the government’s goal is to spend 70 per cent of the defence budget in Canada.

“We want to energize Canadian industry as best we can to stimulate our own economy. Obviously, we have been very reliant on our neighbour to the south for years. We will still work with that neighbour, but we need to be much more resilient and less reliant than we were in the past.”

He added the government’s goal is to create 125,000 new jobs over the next 10 years in the defence and security space.

Ingersoll Mayor Brian Petrie said the announcement was great news for a local business.

“I want to extend a heartfelt congratulations to the team at IMT Precision on this astounding federal funding. IMT has been a trusted and respected employer in our community for more than 100 years. They are a significant contributor to our local economy, and we are thrilled to see their commitment to innovation recognized on a national stage."

The town’s director of economic development also weighed in.

“We have seen firsthand what IMT Precision is capable of during our close collaboration on their recent facility expansion,” said Curtis Tighe.

“Our teams worked seamlessly together to support their growth, and this new federal investment is a testament to the strength of their team. We are excited to continue this great relationship and look forward to the possibility of working with IMT again in the future."