CCC, U.S. Army sign agreement for ramp-up in ammunition production

OTTAWA, March 25, 2024 (GLOBE NEWSWIRE) -- The Canadian Commercial Corporation (CCC) and the United States Army signed an Undefinitized Contract Action (UCA) for the Artillery Propellant Capacity Expansion of General Dynamics Ordnance and Tactical Systems Canada (GD-OTS Canada). The agreement will help address the growing requirements to meet the U.S. and allied commitments to Ukraine and strengthens the resiliency of the integrated Canada-U.S. defence supply chain.

Ukraine's war effort depends heavily on 155mm artillery rounds supplied by Canada, the United States, and other allies. Resupply requirements are projected to place increasing strain on the existing North American defence industrial base capacity, to include constraints on vital components such as the 155mm propulsion system's M31A2 propellant.

GD-OTS Canada's facility in Valleyfield, Quebec, specializes in the production of artillery propellants ? including M31A2. GD-OTS Canada is a Canadian division of General Dynamics Corporation and has been a supplier for over 25 years to both the U.S. Army and Canada's Department of National Defence (DND) under the Munition Supply Program.

The UCA leverages significant investment in the shared defence supply chain to take advantage of the proven technology, know-how, and existing/scalable support infrastructure at GD-OTS Valleyfield to ramp-up 155mm resupply production.

This agreement underscores the profound interdependence of the US-Canada supply chain and highlights bilateral collaboration aimed at enhancing industrial capacity within the ammunition industry. In the realm of security cooperation, the Canada-US defence partnership stands as a strategic alliance committed to bolstering and sustaining the bilateral defence supply chain and fortifying the foundation of the defence industry on both sides of the border. 

Under the Canada-U.S. Defence Production Sharing Agreement and DFARS 225.870, CCC acts as the designated contracting authority for U.S. DoD procurements from Canada.

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CCC is Canada's government to government contracting agency. We help build successful commercial relationships between Canadian businesses and governments around the world through our government to government contracting approach. We are also the Government of Canada's designated contracting authority for U.S. Department of Defense requirements from Canada. To learn more about how we have facilitated billions in trade between Canadian businesses and governments around the world, visit ccc.ca.