Ontario-based manufacturer to build 190 armoured combat vehicles under C$2 billion Canada deal

The procurement will increase the Canadian Armed Forces' ACSV fleet from 360 to 550 vehicles as Ottawa seeks to strengthen its military capabilities amid rising global security challenges.

The new vehicles, designed to protect troops against mines, improvised explosive devices and enemy fire while operating alongside front-line forces, will primarily be used for training exercises at Canadian Armed Forces bases across the country.

The government said every vehicle will be designed, built and assembled in Canada at GDLS-Canada's manufacturing facility in London, Ontario.

Ottawa said the partnership is expected to create or sustain more than 6,000 jobs annually over the next eight years through a supply chain involving more than 600 Canadian companies across over 100 communities.

The announcement also marks GDLS-Canada's designation as the first Strategic Partner under Canada's new Defence Industrial Strategy, a framework aimed at strengthening the domestic defence industry through long-term partnerships between government and Canadian manufacturers.

Under the framework, companies commit to investing in research and development, expanding domestic supply chains and creating Canadian jobs, while the federal government provides long-term procurement commitments and support for export opportunities.

Photo: Mark Carney/X

"Canada's government is ensuring the women and men of our Armed Forces get what they need, when they need it," Carney said in a statement.

Defence Minister David McGuinty said the partnership would strengthen Canada's defence industrial base while helping deliver new military capabilities and supporting highly skilled jobs.

The announcement is part of Canada's broader defence spending plan, which the government says will bring military expenditure to NATO's benchmark of 2% of gross domestic product for the first time since the end of the Cold War.