Twenty-eight Quebec-based organizations, including manufacturing-plant operators, will receive approximately $33 million in Regional Defence Investment Initiative (RDII) funding from the federal government, Industry Minister Mélanie Joly announced Wednesday.

The funding, delivered by Canada Economic Development for Quebec Regions (CED), is intended to help the organizations accelerate their integration into national and international defence supply chains. Joly announced the investment in a speech at the Chamber of Commerce of Metropolitan Montreal. Joly is also the minister responsible for CED.

The federal investment will support 28 projects in total.

“Small and medium-sized enterprises are at the core of regional economic development and play a key role in our government’s plan to build, protect and strengthen Canada’s defence industry,” said Joly.

“Through the Regional Defence Investment Initiative, CED is making strategic investments to help SMEs and organizations increase their capacity and stimulate innovation in this sector. Our government has a clear, ambitious plan to strengthen Canada’s sovereignty, security and prosperity, while also generating economic spin-offs for the industry and for communities across Quebec.”

Manufacturers receiving funds include Terminal & Cable GP, which will use its $1.5-million allocation to refurbish its facility and acquire equipment. The Indigenous-led business specializes in assembling cables and electrical harnesses for the defence industry. Meanwhile, Usinage Préci-Max, which specializes in the machining custom components, has been awarded $158,118 for a facility upgrade designed to boost productivity and production capacity.

Joly outlined the federal government’s vision for economic leadership and its new Defence Industrial Strategy as she confirmed the RDII support for Quebec.

In a news release, Prime Minister Mark Carney’s government said the global landscape is shifting rapidly, with the international rules-based order fading and technological change expanding the fields of conflict. In response, Ottawa is reinvesting to rebuild and rearm the Canadian Armed Forces and adopting a long-term, government-wide approach to strengthen the defence industrial base as a pillar of national security, economic prosperity and strategic autonomy.

Through its first Defence Industrial Strategy, the federal government aims to consolidate the industrial foundations underpinning Canada’s security and economic resilience. By combining long-term investments in defence and industrial capabilities, the strategy is designed to support Canadian businesses and workers, improve supply chains and reinforce Canada’s role as a trusted partner to its allies.

Ottawa said the RDII funding will allow recipients to develop new technologies, adapt products and services to meet the needs of the Canadian Armed Forces, increase production and innovation capacity, improve productivity and competitiveness, explore new markets or consolidate existing ones, and meet required defence-certification standards. The projects are expected to create and maintain 250 well-paid jobs.

As announced in Budget 2025, the federal government has allocated $6.6 billion over five years, beginning in 2025–2026, to strengthen Canada’s defence industrial base under the Defence Industrial Strategy. These initial investments are intended to stimulate research and innovation, strengthen national supply chains and improve access to funding for small and medium-sized enterprises in the defence sector.

The RDII was launched in December 2025 with a $64.9-million budget over three years in Quebec. Funding is being provided through CED’s Regional Economic Growth through Innovation program, which supports entrepreneurs and regional economic players seeking to foster innovation and competitiveness.

Pictured: Usinage Préci-Max custom component as it is being made in Quebec.

Photo: Usinage Préci-Max