Prime Minister Paul Carney’s government launched a new agency Thursday designed to boost defence-infrastructure capacity.

The Defence Investment Agency will tie procurement more strategically to domestic industrial benefits instead of providing most of its business to the U.S. amid increasingly tense relations between the two countries. Carney said the agency will also help Canadian firms scale up and develop cutting-edge capabilities that enable them to compete globally.

The agency’s mandate includes consolidating procurement processes to remove red tape, accelerate government defence-equipment purchase and provide industry with greater clarity and certainty, and ensure earlier engagement between the Canadian Armed Forces and defence industry.

In addition, the agency will align Canada with such partners as the U.K. and France to make joint procurements and more efficient.

While forming the agency, Ottawa will also continue to prioritize investments in dual-purpose infrastructure that delivers immediate benefits to the military and all Canadians, said Carney.

“In doing so, it will not only equip the Canadian Armed Forces with world-class tools, but also position Canada as a leader in industries critical to security and prosperity,” said Carney.

Stephen Fuhr, secretary of state for defence procurement, will head up the new agency. Meanwhile, Doug Guzman will serve as its CEO.

Guzman formerly served as the Royal Bank of Canada’s deputy chair and managing director at Goldman Sachs.