Government of Canada strengthening our economy and military readiness through new defence investments in Saskatchewan

Prairies Economic Development Canada investing more than $8.2 million in Saskatchewan to boost made‑in‑Canada defence capabilities

YORKTON, SK, April 24, 2026 /CNW/ - In a rapidly changing world, Canada's security and sovereignty depend on having the capacity to build, maintain, and supply critical equipment and services right here within our borders.

Government of Canada strengthening our economy and military readiness through new defence investments in Saskatchewan (CNW Group/Prairies Economic Development Canada)

Today, the Honourable Buckley Belanger, Secretary of State for Rural Development, on behalf of Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan), announced more than $8.2 million in federal funding through the Regional Defence Investment Initiative (RDII), for three projects in the Yorkton area. These funds will support the growth and integration of Canadian small and medium-sized businesses into domestic and international defence supply chains.

The investments announced today are:

• Parkland Welding & Machine Ltd. and PWM Hydraulics Ltd. (PWM) in Yorkton will expand its engineering, advanced manufacturing, fabrication, assembly, testing and proofing capabilities through the addition of CNC machining, robotics, and quality-control laboratory, enabling domestic production of defence products for customers in Canada and NATO allies. PrairiesCan is providing a repayable investment of $5 million towards this project.
• Prairie Agricultural Machinery Institute in Humboldt will create an advanced military engineering and testing facility to provide off-road and on-road heavy-vehicle testing, hot and cold environmental chambers, and robotic and drone testing supported by data analytics for prairie manufacturers to meet domestic and international standards. PrairiesCan is providing $3 million in non-repayable funding towards this new capacity.
• Saskatchewan Polytechnic's Digital Integration Centre of Excellence (DICE) in Saskatoon will develop and test a low-cost multi-agent artificial intelligence drone system for autonomous command and control. This will strengthen Canada's sovereign industrial base by delivering domestically developed counter-Uncrewed Aerial System (UAS) capabilities. PrairiesCan's non-repayable investment of $277,000 will support this project.

Growing regional defence capacity on the Prairies reduces reliance on foreign suppliers while creating good jobs and long-term economic opportunities at home.

Today's announcement aligns with the Government of Canada's Defence Industrial Strategy (DIS) which aims to equip the Canadian Armed Forces by expanding domestic production, strengthening supply chains, and reducing reliance on foreign technology. These investments will help grow Saskatchewan's defence manufacturing sector, create good jobs, advance research and development, and bring new technologies to market, supporting long-term economic opportunities.

Secretary of State Belanger also highlighted recent government measures to build an economy where Canadians are empowered with greater security, certainty, and a lower cost of living, including the suspension of the federal fuel excise tax until Labour Day 2026. This is expected to reduce Canadians' bill at the gas station by 10 cents per litre on regular gasoline and 4 cents on diesel. The government is also temporarily suspending the federal fuel excise tax on aviation fuels.

Cutting the tax on gasoline and diesel is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors. With lower costs and greater financial strength, businesses can hire more workers, confidently build, and export more products to global markets.

Quotes

"In an increasingly uncertain global environment, Canada must be able to rely on strong, domestic industrial capabilities. Through the Regional Defence Investment Initiative, our government is investing in Saskatchewan's defence sector to expand capacity, advance research and development, and strengthen manufacturing here at home. These investments support the growth of innovative prairie businesses and help ensure Canada has the tools and technologies needed to protect our security while creating new opportunities for Canadians."

–The Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan)

"Saskatchewan's defence sector is growing and innovating to deliver new technologies and manufacturing capacity to support good jobs here at home and the national security needs of Canada and of our NATO allies. These defence investments are about positioning Saskatchewan to lead as we move forward with our plan to build a secure, prosperous, and resilient Canada, now and for generations to come."

–The Honourable Buckley Belanger, Secretary of State for Rural Development

"PWM is proud to partner with the Government of Canada in advancing Canada's defence manufacturing capabilities. This investment enables us to scale advanced production, strengthen our role in global supply chains, and create opportunities for highly qualified personnel in Canada."

–Karen Fransishyn, Owner, PWM

"The PAMI team and its Board of Directors is pleased to partner with PrairiesCan and looks forward to working together to enhance and broaden our testing support for Canada's defence sector. Through access to advanced equipment and modern facilities, PAMI's services help position Canadian suppliers to compete successfully on the global stage. This collaboration will also create new opportunities to drive innovation and support the growth of the industry."

–Paul Buczkowski, President & CEO, Prairie Agricultural Machinery Institute

"Through our Digital Integration Centre of Excellence, Saskatchewan Polytechnic is well-positioned to share expertise in digital innovation, artificial intelligence and machine learning to support the Canadian defence sector. This investment strengthens our ability to develop the talent and technology needed to protect Canada's security and sovereignty. We appreciate this exceptional support from PrairiesCan and their investment in the DICE autonomous command and control drone project."

–Dr. Larry Rosia, President and CEO, Saskatchewan Polytechnic

Fast Facts

• Investments under the Defence Industrial Strategy, including this RDII funding, will contribute to Canada spending two percent of gross domestic product on defence in 2025–26.
• Increasing investments in core military capabilities, building up Canadian industry, and dual-use investments are putting Canada on a pathway to meet the new North Atlantic Treaty Organization Defence Investment Pledge to invest five percent of gross domestic product by 2035.
• The Canadian defence industry contributes nearly $10 billion to the gross domestic product and supports over 81,000 jobs.
• The RDII is a three-year $379.2 million national program delivered by Canada's seven Regional Development Agencies that aligns with the Defence Industrial Strategy, advancing Canada's ability to rebuild, rearm, and reinvest in its military while strengthening supply chains, readiness, and international partnerships.
• PrairiesCan continues to accept RDII applications from eligible businesses and organizations operating across the Prairie provinces.

Associated links

• Prairies Economic Development Canada (PrairiesCan)
• Regional Defence Investment Initiative
• Prime Minister Carney launches Canada's first Defence Industrial Strategy to strengthen security, create prosperity, and reinforce strategic autonomy - News Release
• Prime Minister Carney announces Canada has achieved the NATO 2% defence spending target | Prime Minister of Canada
• PWM Hydraulics Ltd.
• Prairie Agricultural Machinery Institute (PAMI) – Engineered Solutions
• Saskatchewan Polytechnic
• Prime Minister Carney suspends the federal fuel excise tax on gasoline and diesel to lower costs for Canadians | Prime Minister of Canada

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SOURCE Prairies Economic Development Canada

Contacts: Soraya Lemur, Press Secretary, Office of the Hon. Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada, [e-mail], 343-574-6781; Tunde Oyateru, Communications Manager, Prairies Economic Development Canada, [e-mail]