Federal Government Invests Over $600,000 to Strengthen Lunenburg Aerospace Company and Create Jobs in Nova Scotia

Lunenburg is better known for colourful waterfront buildings and a proud shipbuilding history than for cutting-edge aerospace equipment.

But that narrative is shifting.

As global tensions rise and the traditional rules-based order shows signs of strain, Ottawa is moving quickly to reinforce the country’s defence backbone — and that effort now stretches straight into Atlantic Canada.

The federal government has made it clear: Canada cannot rely solely on old systems in a rapidly changing world.

Cyber warfare, artificial intelligence, advanced manufacturing, and supply chain resilience are now part of the defence conversation.

To keep pace, investment is flowing not just into the Canadian Armed Forces, but also into the companies that design, build, and supply critical equipment.

Ottawa’s Bigger Defence Reset

Through Canada’s first-ever Defence Industrial Strategy, the federal government is working to match long-term defence spending with domestic industrial strength.

The idea is simple but strategic — if Canada is going to modernize its military, Canadian companies should be equipped to deliver the parts, systems, and technologies required.

This approach also reinforces Canada’s commitments within NATO and strengthens its position as a reliable ally.

Canada already participates in continental defence through NORAD, and recent geopolitical realities — including the war in Ukraine and rising tensions in the Indo-Pacific — have only heightened the urgency of industrial readiness.

Rather than sending contracts abroad, Ottawa is encouraging small and medium-sized enterprises to scale up at home.

That includes companies in Atlantic Canada, a region historically rich in shipbuilding, ocean technology, and aerospace expertise.

Investment Announcement in Lunenburg

That broader strategy became local news when Jessica Fancy, Member of Parliament for South Shore—St. Margarets, announced more than $600,000 in federal funding under the Regional Defence Investment Initiative.

The announcement was delivered on behalf of the Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency.

The funding will go to Stelia North America, an aerospace and defence manufacturer based in Lunenburg.

For a town with deep maritime roots, the expansion into advanced aerospace manufacturing marks an evolution — from wooden hulls centuries ago to precision-machined aerospace components today.

What the Funding Will Actually Do

This is not just a cheque with a press release.

The investment is targeted toward serious upgrades.

Stelia North America will purchase and install advanced manufacturing and inspection equipment.

That includes CNC machines for precision machining, a robotic sanding cell to improve finishing processes, a process oven for specialized treatments, upgraded measuring equipment for quality assurance, and even a 3D printer to support prototyping and production flexibility.

These upgrades are expected to allow the company to produce and test parts more quickly and efficiently.

Speed and precision are critical in aerospace and defence contracts, where international clients demand rigorous standards.

The company also anticipates creating 15 full-time jobs as production capacity increases.

In a smaller community like Lunenburg, that kind of job growth has a noticeable local impact — particularly when those roles are skilled, well-paying positions in advanced manufacturing.

Why the Regional Defence Investment Initiative Matters

The Regional Defence Investment Initiative, often referred to as RDII, is a key pillar of Canada’s Defence Industrial Strategy.

Its focus is on helping smaller firms modernize, adopt advanced technologies, and integrate into both domestic and global supply chains tied to defence and security.

Atlantic Canada already plays a significant role in national defence infrastructure.

Nova Scotia, for example, is home to major shipbuilding operations under Canada’s National Shipbuilding Strategy.

Aerospace clusters in Halifax and other parts of the province support everything from aircraft maintenance to specialized component manufacturing.

By strengthening companies like Stelia North America, the government is working to ensure that supply chains are resilient.

The COVID-19 pandemic exposed vulnerabilities in global production networks, and defence planners are keenly aware that national security can be compromised when key components are sourced from unstable or distant markets.

Jobs, Skills, and Long-Term Capacity

Beyond hardware and policy, there is a human dimension to this investment.

Advanced CNC machines and robotic cells require trained operators and technicians.

That means local workers may need upskilling, partnerships with technical colleges may deepen, and new career paths could open up for young people in the region.

Atlantic Canada has sometimes struggled with outmigration, as younger residents leave in search of opportunities elsewhere.

Investments like this aim to anchor talent locally by offering competitive, high-skilled employment within growing industries.

Over time, building industrial capacity also attracts additional contracts.

When companies demonstrate they can meet global standards, larger aerospace primes and defence contractors are more likely to source components from them.

Canada’s Broader Defence Push

This announcement fits into a larger wave of defence modernization across the country.

Canada has committed to major procurement projects, including new fighter jets and naval vessels.

Strengthening the industrial base ensures that domestic companies can participate in these projects, not just as subcontractors but as innovators.

There is also growing recognition that modern defence extends beyond traditional battlefields.

Cybersecurity, artificial intelligence, unmanned systems, and space technologies are increasingly central to national security.

Investing in advanced manufacturing capabilities now positions companies to adapt as defence technologies evolve.

What’s Next?

The immediate next step for Stelia North America is installing and integrating the new equipment.

That will likely involve technical setup, staff training, and adjustments to production workflows.

On a broader level, Ottawa is expected to continue rolling out elements of the Defence Industrial Strategy.

More funding streams and partnership opportunities may emerge for businesses willing to scale up and innovate.

For Nova Scotia, this could mean deeper integration into national defence supply chains and expanded collaboration between government, industry, and post-secondary institutions.

If these investments succeed, Lunenburg’s role in Canada’s defence ecosystem may grow steadily — turning a coastal town into a quiet but critical contributor to national security.

Summary

Canada is reshaping its defence posture in response to a rapidly changing global landscape.

As part of that effort, more than $600,000 in federal funding under the Regional Defence Investment Initiative is being directed to Stelia North America in Lunenburg, Nova Scotia.

The investment will allow the company to install advanced manufacturing and inspection equipment, boost production speed, create 15 full-time jobs, and strengthen its position within global aerospace and defence supply chains.

Beyond one company, the funding reflects a broader push to modernize Canada’s defence industrial base, support regional economic growth, and ensure the Canadian Armed Forces have reliable, domestically supported equipment in an increasingly complex security environment.