Government of Canada invests $2.7 million to strengthen Northeastern Ontario’s defence sector
Press Release
FedNor funding will support two prominent companies to scale up and pursue opportunities in the defence supply chain
July 31, 2026 – North Bay, ON – Federal Economic Development Agency for Northern Ontario – FedNor
The global landscape is shifting rapidly. The Government of Canada is focused on what we can control: protecting our sovereignty, building our prosperity, and strengthening our economic resilience.
Today, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor, announced FedNor is investing $2,700,909 to help bring two important projects to life. Led by International Test Pilots School (ITPS) and the SKADI Cyber Defense Corporation, the funded initiatives will help strengthen Northern Ontario’s economy, bolster our defence sector and protect Canada’s sovereignty.
To support its advanced jet training operations ITPS Canada is receiving FedNor funding of $1.5 million to relocate its International Tactical Training Centre (ITTC) to North Bay’s Jack Garland Airport. Specifically, the repayable investment will allow ITPS Canada to renovate and equip a 21,000 square foot hangar exclusively dedicated to delivering its Fighter Lead-In Training—an advanced tactical training solution for NATO and allied military pilots preparing to operate next-generation fighter jets. Funded through the Government of Canada’s Regional Defence Investment Initiative (RDII), this strategic initiative will create approximately 60 full-time jobs, strengthen the economy and further position North Bay as a defence and aerospace training hub.
Furthermore, to support Canada’s domestically built autonomous defense capabilities, the SKADI Cyber Defense Corporation will receive $1,200,909 to help advance the development and commercialization of its Frostbow™ AI Cyber Defense system. Designed to protect IT networks and infrastructure, Frostbow™ makes real-time threat assessments, with minimal human oversight or intervention. Provided through the RDII, this repayable investment will support the evolution of this cutting-edge technology by allowing the company to upgrade the system so it’s better equipped to proactively solve problems, plan and execute tasks and defend networks against cyber attacks.
A strong defence industry is key to Canada’s national sovereignty and security as well as its economic resilience and long-term prosperity. Through generational investments, the Government of Canada is reinvesting, rebuilding and rearming the Canadian Armed Forces; helping Canadian defence companies grow and compete; and strengthening industrial capacity needed to deliver critical defence and manufacturing capabilities at home.
Quotes
“When we invest in Canadian workers, businesses and innovation, we are strengthening our economy and our sovereignty. By supporting Canadian expertise and technology in Northern Ontario, we are strengthening our defense sector and ensuring Canada is equipped with tools we need, when it matters most. These investments are helping build a stronger, more resilient Canada, and we are building it right here at home.”
The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor
“This $2.7 million investment in ITPS and the SKADI Cyber Defense Corporation will strengthen the economy, bolster Canada’s defence sector and create more than 60 high-quality jobs here at home in Northern Ontario. The RDII is a generational opportunity to reinforce our sovereignty and grow the links that keep our communities and industries connected. Today’s announcement is helping to achieve exactly that by training the next generation of military pilots in Northern Ontario and developing new cyber security solutions to preserve and protect our data and digital infrastructure.”
Pauline Rochefort, Parliamentary Secretary to the Secretary of State (Rural Development), and Member of Parliament for Nipissing-Timiskaming
“We appreciate the support of FedNor and the Government of Canada. This investment is an important step in ITTC’s relocation to North Bay and in building a sovereign Canadian tactical aviation training capability. North Bay’s airspace, aviation infrastructure and military heritage give us the right operating environment to prepare pilots for modern operations. It will strengthen Canada’s capacity to support NATO and allied readiness while creating highly skilled aerospace and defence jobs in Northern Ontario.”
Dave Lohse, CEO, ITPS (Canada) Ltd.
“We are pleased that FedNor is stepping up to support the evolution of Frostbow™ so we can make this cybersecurity solution stronger and more accessible to businesses and the Canadian military. Our proprietary system continuously detects, investigates, and responds to cyber threats in seconds so we can safeguard digital infrastructure, business information and protect Canada’s defence sector. The Canadian military and businesses across the country deserve world-class cybersecurity that keeps their data safe and on home soil - that’s exactly what Frostbow™ delivers.”
Rachel Clark, CEO and Founder, SKADI Cyber Defense Corporation
Quick facts
The funding announced today is provided through the Government of Canada’s Regional Defence Investment Initiative. Administered by FedNor in Northern, the RDII helps small and medium-sized enterprises (SMEs) integrate into defence supply chains and enhance industrial and innovation capacity in support of Canada’s defence and security needs.
The RDII also supports investment by businesses and organizations that adapt dual-use technologies or capabilities for defence applications, as well as projects that improve the productivity and readiness of Canada’s regional defence ecosystem.
The Canadian defence industry is comprised of nearly 600 businesses that contributed over $9.6B in GDP, while supporting more than 80,000 jobs across the country. These companies include large Canadian-owned firms, Canada-based subsidiaries of large multinational companies, and many small and medium-sized businesses in Canada that employ highly skilled workers in high-quality jobs.
ITPS’s integrated training system combines ground school, simulation, and live flight, all reinforced by the Advanced Aircraft Simulation Centre and its Mission Control Theatre for real-time Air Combat Maneuvering Instrumentation debriefs.
SKADI’s unique cognitive AI architecture, composed of four integrated AI disciplines: ontology, metacognition, causal reasoning, and prediction, operate as a self-regulating system, enabling the platform to develop its own understanding of threats and autonomously determine appropriate responses.
Today’s investment also aligns with the federal government’s Defence Investment Strategy, a $6.6-billion plan to prioritize building military equipment at home, hike the share of defence contracts awarded to Canadian firms and add up to 125,000 new jobs over the next decade.