Office of Terry Sheehan

Sault Member of Parliament

Local China Steel Supports Construction of Armoured Combat Support Vehicles for the Canadian Armed Forces

For Immediate Release

August 4, 2020 - Sault Ste. Marie, Ontario – National Defence / Canadian Armed Forces

China Steel, a locally owned business in Sault Ste. Marie, will be supporting Canada’s national defence with the production of made-in-Canada Armoured Combat Support Vehicles (ACSV). The Canadian Armed Forces can use ACSVs to respond to natural disasters and uphold Canada’s NATO defence commitments around the world.

Production on the first ACSV has begun in London, Ontario at the General Dynamics Land Systems-Canada manufacturing facilities. These new vehicles will fulfill a variety of support roles such as that of Troop/Cargo Vehicle (TCV), ambulance, command post, and mobile repair and recovery for the Canadian Armed Forces.

Locally, China Steel has been awarded a sub-contract to provide support to this procurement. This contract, worth over $1 million, will help sustain 10 jobs in Sault Ste. Marie during the pandemic while supporting the growth of an innovative local business.

This is a big step forward as the government continues to deliver on Strong, Secure, Engaged, Canada’s first fully costed and funded defence policy. As per the Industrial and Technological Benefits Policy, General Dynamics will re-invest an amount equal to the value of the contract to create and sustain well-paying jobs across the country.

These vehicles will replace the current fleets of M113 Tracked Light Armoured Vehicle (TLAV) and the LAV II Bison. The first vehicle is expected roll off the production line this December, with deliveries occurring through February 2025. Testing, training, and procurement of spare parts will be required before the initial vehicles are distributed to Canadian Armed Forces bases in 2022.

Quotes

“This contract has kept our employees working and earning a living during this pandemic. A large thank you to the Canadian Government and General Dynamics Land Systems-Canada for their support.”

• Robert Guido, Manager, China Steel

“Sault Ste. Marie’s thriving steel industry has supported thousands of well-paying middle-class jobs for many years. China Steel is part of this tradition. I’m proud of the innovative people at China Steel for helping keep Canada safe with this procurement project, and I’m proud that our government is helping sustain jobs in the Sault while standing up for our steel industry.”

 

• Terry Sheehan, Parliamentary Secretary to the Minister of Economic Development and Official Languages (FedNor), and Member of Parliament for Sault Ste. Marie

Quick Facts

• In 2019, the Government of Canada announced that Algoma Steel was awarded a major contract through the National Shipbuilding Strategy to help build Joint Support Ships for the Royal Canadian Navy.

• The current fleet of armoured support vehicles is comprised of the LAV II Bison and the M113 Tracked LAV, which have already been reconfigured and life-extended.

• A contract was awarded to General Dynamics Land Systems-Canada on September 5, 2019. This contract has a value of approximately $2 billion (taxes included) for 360 ACSV, initial spare parts, technical manuals, and training.

• The CAF’s Armoured Combat Support Vehicles will be available in eight variants, providing services such as: ambulances, vehicle recovery, engineering, mobile repair, electronic warfare, troop carrying, and command posts.

• This fleet can be used in a wide variety of roles, such as part of Canada’s contribution to NATO’s assurance and deterrence measures in Central and Eastern Europe, or in the Canadian Armed Forces’ response to natural disasters in Canada.

• Canada’s defence policy, Strong, Secure, Engaged, included a commitment to integrate Gender-Based Analysis Plus (GBA+), in all defence activities across the Canadian Armed Forces and Department of National Defence. This ensures that every activity is informed by GBA+, and was done for this procurement.  

• The Industrial and Technological Benefits Policy is the government’s main tool for ensuring economic benefits from large defence procurements, and it means that the supplier will reinvest an amount equal to the value of this contract – dollar-for-dollar – back into the Canadian economy. In addition, Canada required General Dynamics to provide a gender and diversity plan outlining the company’s efforts to promote workforce diversity and gender equality within its corporate and supply chain operations.  

• The Industrial and Technological Benefits Policy applies to this contract, ensuring that General Dynamics will invest 100 percent of the value of the contract back into the Canadian economy, providing opportunities for Canadian small and medium businesses, and supporting innovation and skills development for Canadian workers.

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Associated Links

Canada negotiates new armoured combat support vehicles

Media Contact

Jennifer MacNab

613-406-1280 [email protected]