While at the Chamber of Commerce of Metropolitan Montréal (CCMM), the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions (CED), addressed representatives of Quebec’s economic sector regarding the Government of Canada’s vision for economic leadership and the country’s new Defence Industrial Strategy. Minister Joly also announced a total of over $33M in CED funding under the Regional Defence Investment Initiative (RDII) for Quebec.
The world is changing rapidly. The international rules-based order is fading, and technological change is expanding the fields of conflict. The Government of Canada is thus focusing on what it can control: reinvesting to rebuild and rearm the Canadian Armed Forces. Canada is adopting a long‑term government-wide approach aimed at strengthening the defence industrial base, a pillar of national security, economic prosperity and strategic autonomy.
READ: Canada’s First Defence Industrial Strategy: Security, Sovereignty and Prosperity
Through its first-ever Defence Industrial Strategy, the Government of Canada is consolidating the industrial foundations that underpin Canada’s security and economic resilience. By combining long‑term investments in defence and industrial capabilities, the Strategy supports Canadian businesses and workers, improves our supply chains and makes Canada a trusted partner to its Allies. We are making historic investments in Canada’s defence ecosystem to transform our army, create well-paid, quality jobs for Canadians across the country and, above all, provide the Canadian Armed Forces with the equipment needed to ensure Canada’s security and sovereignty.
The funds provided by CED will enable the recipients to develop new technologies, adapt their products and services to meet the needs of the Canadian Armed Forces, increase their capacity to produce and innovate, improve their productivity and competitiveness, explore new markets or consolidate existing ones, and meet the certification standards and qualifications required in defence. In addition, these projects will lead to the creation and maintenance of 250 well-paid jobs within these businesses and organizations.
A strong defence industry is key to the country’s sovereignty and national security, as well as its economic resilience and prosperity in the long term. As such, the Government of Canada is taking bold steps to foster a more resilient, sustainable defence industrial base, including by making targeted regional investments to increase Canada’s defence industrial capacity.
The list of recipients and additional information on each of the 28 projects receiving support under the RDII are provided in the related backgrounder listed at the bottom of this article.
“Small and medium-sized enterprises are at the core of regional economic development and play a key role in our government’s plan to build, protect and strengthen Canada’s defence industry. Through the Regional Defence Investment Initiative, CED is making strategic investments to help SMEs and organizations increase their capacity and stimulate innovation in this sector. Our government has a clear, ambitious plan to strengthen Canada’s sovereignty, security and prosperity, while also generating economic spin-offs for the industry and for communities across Quebec.”
The Honourable Mélanie Joly, Member of Parliament for Ahuntsic–Cartierville, Minister of Industry and Minister responsible for CED
ADDITIONAL INFO
- Prime Minister Carney launches Canada’s first Defence Industrial Strategy to strengthen security, create prosperity, and reinforce strategic autonomy
- Security, Sovereignty and Prosperity
- As announced in Budget 2025, initial investments have been made to boost Canada’s defence industrial base by allocating $6.6 billion over five years, starting in 2025-2026, under the Defence Industrial Strategy.
- These initial investments will stimulate research and innovation, strengthen national supply chains, and improve access to funding for Canada’s small and medium-sized enterprises (SMEs) in the defence sector.
- In this context, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for CED, announced on December 8, 2025, the launch of the Regional Defence Investment Initiative (RDII), aimed at meeting the country’s defence needs, while also stimulating regional economic development. In Quebec, the RDII has an investment budget of $64.9 million over three years.
- The RDII funds are being granted under CED’s Regional Economic Growth through Innovation (REGI) program. This program targets entrepreneurs leveraging innovation to develop their operations and increase their competitiveness, as well as regional economic players helping to create an entrepreneurial ecosystem conducive to innovation and growth for all, across all regions.
- By drawing on CED’s expertise and regional anchoring in Quebec to support innovation, the RDII will strengthen Canada’s defence industrial base in all regions across the country, while also helping Canada meet its NATO defence spending commitment.
- CED is the key federal player in Quebec to promote economic development in the regions and among SMEs. With its 12 regional offices, it accompanies businesses, organizations and all regions across Quebec into tomorrow’s economy.
Backgrounder
Summary
- 28 projects supported by CED
- $33,653,792 in CED financial contributions
- 7 non-repayable contributions (indicated in the table as “NR”)
- 21 repayable contributions (all other projects)
Details
| Region | Recipient | Activities funded by CED | Contribution |
|---|
| Montérégie | Héroux-Devtek | Equipment acquisition: The aim of the project is to increase productivity at a business that designs and manufactures landing gear for the defence sector. | $10,000,000 |
| Montérégie | Terminal & Cable GP | Equipment acquisition and facility refurbishment: The aim of the project is to increase production capacity at an Indigenous business specializing in assembling cables and electrical harnesses for the defence industry.*This funding is conditional on the signing of a contribution agreement between Terminal & Cable GP and CED. | $1,500,000 |
| Montérégie | TestX Lab (9538-5332 Québec inc.) (site in French only) | Equipment acquisition: The aim of the project is to launch a value-added services business. | $200,000 |
| Montréal | CM Labs Simulations | Marketing strategy: The aim of the project is to increase sales at an innovative business specializing in virtual training simulators. | $3,000,000 |
| Montréal | Alphacasting | Equipment acquisition: The aim of the project is to improve productivity at a business specializing in the manufacture of aerostructure parts and sub-assemblies in titanium, aluminum and steel for the aerospace and defence industries. | $2,400,000 |
| Montréal | C3RiOS Systems | Marketing strategy and equipment acquisition: The aim of the project is to support the growth, within the defence sector, of an aerospace business specializing in the design of avionics systems. | $1,250,000 |
| Montréal | Anyon Systems | Marketing strategy: The aim of the project is to increase sales at a business that designs superconducting quantum computer solutions and advanced detection technologies for the defence sector.*This funding is conditional on the signing of a contribution agreement between Anyon Systems and CED. | $600,000 |
| Montréal | Beslogic | Marketing strategy: The aim of the project is to increase sales at a business specializing in the development of an artificial intelligence platform for the aeronautics and defence industries. | $250,000 |
| Montréal | Canadian Technology Systems (4364546 Canada Inc.) | Equipment acquisition and marketing strategy: The aim of the project is to improve productivity and increase sales at a business specializing in the development of a technology to neutralize explosive devices. | $245,000 |
| Montréal | SimActive | Marketing strategy: The aim of the project is to increase sales at a business that has developed mapping software. | $200,000 |
| Laurentides | Kinova | Equipment acquisition: The aim of the project is to improve productivity at a business that develops advanced robotics solutions. | $2,500,000 |
| Laurentides | Composites Development Center of Quebec (Cégep de Saint-Jérôme) | Equipment acquisition: The aim of the project is to strengthen the capabilities of an organization that provides guidance to businesses on innovation and technology transfer. | $400,000NR |
| Laurentides | Usinage Préci-Max (site in French only) | Facility upgrade: The aim of the project is to increase productivity and production capacity at a business specializing in the machining of custom components. | $158,118 |
| Estrie | Université de Sherbrooke | Equipment acquisition: The aim of the project is to foster innovation and technology transfer at a high-tech interdisciplinary institute. | $2,005,200NR |
| Estrie | MiQro Innovation Collaborative Centre (C2MI) | Equipment acquisition: The aim of the project is to strengthen the capacity for innovation and technology transfer of a research and development centre specializing in microelectronics. | $1,600,000NR |
| Estrie | Centre de technologies avancées BRP-Université de Sherbrooke (CTA) | Equipment acquisition: The aim of the project is to foster technology transfer at a non-profit organization working on innovation for the specialized vehicle market. | $825,600NR |
| Estrie | Usinage Préciaxes | Equipment acquisition: The aim of the project is to increase production capacity at a business specializing in the machining of high-precision components. | $75,000 |
| Mauricie | Quebec Metallurgy Center (CMQ) | Equipment and accreditation acquisition: The aim of the project is to strengthen the capacity for innovation and technology transfer of a research and development centre specializing in metallurgy. | $1,641,900NR |
| Bas-Saint-Laurent | Novika Solutions | Equipment acquisition: The aim of the project is to strengthen an organization’s capability to assist with the development of innovative products and processes in support of the defence and manufacturing sectors. | $1,230,000NR |
| Bas-Saint-Laurent | Les Industries Desjardins (9156-1795 Québec Inc.) | Equipment acquisition: The aim of the project is to increase production capacity and productivity at a business specializing in the design and manufacture of reservoirs. | $640,000 |
| Gaspésie–Iles-de-la-Madeleine | Chantier Naval Forillon | Facility upgrade: The aim of the project is to improve productivity at a shipyard specializing in the manufacture of vessels. | $1,151,250 |
| Lanaudière | INFLO Technique | Equipment acquisition: The aim of the project is to increase productivity at a business specializing in the design and manufacture of custom valves for the nuclear and national defence sectors. | $500,000 |
| Lanaudière | ApexO | Marketing strategy and innovation activities: The aim of the project is to increase sales at a business specializing in the design of precision ballistics software. | $180,000 |
| Outaouais | Carcajou Tactical | Equipment acquisition and leasehold improvements: The aim of the project is to increase production capacity and sales at a business specializing in the manufacture of tactical accessories. | $331,725 |
| Outaouais | Tyto Robotics | Marketing strategy: The aim of the project is to increase sales at a business that manufactures test systems for drone components. | $250,000 |
| Québec | Ferreol | Marketing strategy: The aim of the project is to increase sales at a business specializing in the design and marketing of alpine skis. | $250,000 |
| Québec | Levando Technologies | Business launch: The aim of the project is to launch a business specializing in the development of energy storage solutions. | $170,000 |
| Québec | Ferreol Technologies (9480-3798 Québec Inc.) | Innovation activities and marketing strategy: The aim of the project is to increase sales and the innovation potential at a business specializing in the development of innovative materials. | $99,999NR |
