EURENCO, the European leader in energetic materials, announces the signing of a Letter of Intent (LOI) with NALAGX, a Canadian industrial partner, to finalize negotiations for the establishment of an industrial campus in Canada dedicated to the manufacture of energetic materials.

This strategic agreement marks an important step in the parties’ discussions and demonstrates a shared desire to explore opportunities for industrial cooperation in the production of energetic materials, with the aim of strengthening NATO’s security and supply chain resilience.

This industrial complex will be dedicated to the production of a range of energetic materials essential for military applications, including various types of ammunition, such as shells and heavy artillery, as well as for civilian needs, such as mining. The first explosives manufacturing plant is scheduled to be operational by 2029.

The project foresees that this future production site, owned by NALAGX, will be operated by EURENCO. This new production capacity will meet the growing demand from NATO countries. It will contribute directly to strengthening Canada’s defence industrial base and will improve the resilience of explosives supplies to European and North American ammunition manufacturers.

Thierry FRANCOU, CEO of EURENCO, said: “This Letter of Intent illustrates EURENCO’s growth and resilience. It reflects our commitment to working hand in hand with strategic partners, in Europe and beyond, to strengthen industrial sovereignty and ensure security of supply for our European and NATO customers.”

Patrick C. GAGNON, CEO of NALAGX, said: “Our agreement is a concrete illustration of the rebirth of the defence industry in Canada. This partnership between NALAGX and EURENCO will generate an estimated economic impact of over $1 billion, as well as the creation of more than 500 direct jobs in the region where our production campus will be located. We welcome this agreement with EURENCO and reaffirm our commitment to meeting NATO countries’ energetic materials supply needs.“