Canada to buy nearly $2-billion in armoured vehicles from U.S. defence contractor

The federal government has picked the local subsidiary of a U.S. defence contractor as Ottawa’s first “strategic partner” to build capabilities for the country’s growing military, Prime Minister Mark Carney announced Thursday.

As part of this, Canada will pay General Dynamics Land Systems-Canada nearly $2-billion over four years to build 190 more armoured combat support vehicles, expanding the Canadian Army’s fleet of armoured vehicles to 550 from 360, Mr. Carney said at the company’s plant in London, Ont.

General Dynamics’ Canadian unit has been a key supplier of armoured vehicles to the government for nearly 50 years. Its ultimate parent company, General Dynamics, is headquartered in Reston, Va.

The deal also makes GDLS-Canada the first company named a “strategic partner” under the government’s new defence industrial strategy, a plan unveiled this year to expand the military business in Canada.

As a strategic partner with Ottawa, companies commit to investing in Canadian research and supply chains and expanding their domestic work force. In exchange, the Canadian government has said it will act as what it calls an anchor customer, moving faster on approvals and helping firms pursue export sales.

“In a more dangerous and divided world, Canada’s government is ensuring the women and men of our Armed Forces get what they need, when they need it. Through this new partnership, GDLS-Canada will design, build, deliver, and sustain the next generation of armoured combat vehicles here in Canada,” Mr. Carney said in a statement.

“This partnership gives Canadian industry the confidence to invest, innovate, and grow, keeping skilled jobs and hard-won expertise here at home. That is how we build Canada strong.”

The Carney government noted that Canadian workers across the country will benefit from this contract.

“Every vehicle will be designed by Canadian engineers, built with Canadian materials, and assembled by Canadian workers at the GDLS-Canada factory,” The Prime Minister’s Office noted in a statement. “This partnership will create or sustain more than 6,000 high-paying jobs across Canada every year over the next eight years.”

It said the work carried out at GDLS-Canada draws on more than 600 Canadian suppliers, in more than 100 communities across the country, from steelworkers at InterPro in Regina who produce the advanced armour, to the engineers at Thales Canada in Saint-Laurent, Que., who design the night vision and thermal imaging systems, to the electricians at IMP Aerospace & Defence in Enfield, N.S., who build specialized components.

Ottawa says 89 ACSVs from the existing fleet have already been given to Ukraine, and a further 35 were pledged this month at the NATO summit in Ankara.