IVI (SNC Canada's ammunition division) was bought by General Dynamics.
The CF paid almost 40 percent more for the C7s from Diamaco than we could have bought M16A2s from Colt, in order to ensure we had a domestic arms manufacturing concern. We have also, over the 60 years since WWII, paid premium prices for our ammunition in order to shore up CIL (later IVI and still later SNC-Lavallin Group) - so that we would have a domestic supply of ammunition. I have no issue with these decisions, - there were valid strategic concerns.
In the past year Diamaco has been sold to Colt, and IVI to General Dynamics. The US needs this production surplus to meet the requirements of the war in Iraq and Afghanistan. So, what happens when these wars inevitably end and the excess production capacity is not needed? Do we honestly think these US firms are going to close their plants in the US and throw US workers out of jobs? I don't think so. No, they will close the Canadian plants and move any useful machinery south. So, Canada will have lost the security of supply guaranteed by having domestic suppliers. This is a very bad strategic move, and anybody should recognise it as such.