The Canadian federal government has finalized a major defence procurement agreement worth $307 million with Colt Canada to supply 30,000 new, domestically manufactured assault rifles to the Canadian Army. The deal marks a significant step toward modernizing the military’s small arms inventory while also strengthening Canada’s defence manufacturing sector.
The initial contract covers a three-year period, with deliveries of the new modular rifles expected to begin in early 2027. Officials have also confirmed that the government retains the option to expand the order by an additional 35,000 rifles in the future.
Stephen Fuhr, Secretary of State for Defence Procurement, emphasized that the acquisition is critical to replacing the aging C7 and C8 rifles currently in service. These weapons have been in use for more than three decades, surpassing their intended operational lifespan.
“The current rifles have served for around 35 years, and they were not designed to last that long,” Fuhr stated. “This new equipment will significantly enhance the capabilities of our armed forces.”
According to Fuhr, the procurement process was accelerated by nearly two years through the use of streamlined purchasing measures introduced during the COVID-19 pandemic. The government leveraged direct acquisition through the munitions supply program and coordinated the deal via the newly established Defence Investment Agency to expedite timelines.
A key feature of the contract is its focus on domestic production. Colt Canada has committed to sourcing approximately 80 percent of each rifle’s components within the country. Additionally, all ammunition associated with the program will be manufactured in Canada, reinforcing national supply chain resilience.
Economic benefits are also expected from the project. Government estimates suggest the initiative will contribute roughly $10 million annually to Canada’s GDP over the next five years. Colt Canada is also set to expand its workforce by 70 employees to meet production demands.
The rifle model has already attracted international interest. Denmark recently announced plans to acquire 50,000 units of the same weapon system, highlighting its growing appeal among allied nations.
Fuhr described the agreement as a model for future defence investments, noting its dual impact on military readiness and economic growth. “This is exactly what we aim to achieve supporting our armed forces while stimulating domestic industry and strengthening ties with allies,” he said.
While the new rifles signal a major upgrade, the government has not yet clarified what will be done with the existing stock of C7 and C8 firearms.
This procurement forms part of a broader surge in defence spending by the federal government. Recent initiatives include a $200 million investment in a dedicated space launch facility, $1.4 billion allocated to bolster the domestic munitions sector, and nearly $1 billion directed to the National Research Council for advancements in drone and aircraft technologies.
The rifle contract underscores Canada’s evolving defence strategy, which increasingly prioritizes both modernization and economic self-reliance.
