OTTAWA (Azat TV) – The Canadian federal government has officially awarded a $307 million contract to Kitchener-based manufacturer Colt Canada to supply 65,402 new modular assault rifles to the Canadian Armed Forces. This procurement marks the beginning of a phased effort to replace the military’s existing C7 and C8 rifles, which have remained in service for nearly 35 years.
Modernizing the Canadian Armed Forces Arsenal
The contract, announced Thursday, covers the immediate acquisition of the first 30,000 units, with delivery expected to begin in early 2027. Under the terms of the agreement, the government retains the option to purchase an additional 35,000 rifles four years from now. Secretary of State of Defence Procurement Stephen Fuhr stated that the current arsenal is well beyond its intended shelf life, noting that the new modular rifles were specifically requested by military leadership to meet the operational demands of both regular forces and reservists.
Economic Impact and Industrial Scaling
The deal is expected to significantly bolster domestic manufacturing capacity. Colt Canada, a subsidiary of the Prague-based Colt CZ Group, has committed to ensuring 80 percent of the production content remains Canadian. The company plans to expand its Kitchener workforce from 130 to 200 employees to fulfill the order. Officials estimate the contract will contribute approximately $10 million annually to the national GDP, while simultaneously enhancing the company’s ability to export to international allies, including Denmark, which recently contracted for 50,000 of the same modular carbines.
Strategic Procurement Under the Defence Investment Agency
This agreement represents the fifth major procurement contract facilitated by the newly established Defence Investment Agency (DIA). While opposition parties have questioned the necessity of the agency, Fuhr defended its performance, asserting that the DIA has successfully accelerated timelines. According to Lt.-Gen. Michael Wright, commander of the Canadian Army, the government managed to shorten the procurement process by two years. This move is part of a broader government effort to meet NATO’s two-percent-of-GDP defence spending target by March 31, following recent multi-billion dollar investments in domestic munitions and aerospace research.
The accelerated pace of this procurement highlights a strategic pivot toward domestic industrial capability as a primary vehicle for meeting NATO spending obligations. By linking the replacement of aging small arms to both regional job creation and international export potential, the government is attempting to insulate its defence spending from the political volatility often associated with high-cost military acquisitions.