Swedish steel producer Swebor Stal Svenska AB and armoured vehicle maker Roshel Inc. are joining forces to establish Canada’s first facility entirely dedicated to producing ballistic-grade steel.

The companies signed a partnership agreement in Sweden during a visit by

Industry Minister Melanie Joly

, who’s trying to attract investment in tariff-hit sectors and build up the country’s defence industrial base.

The project will leverage Canadian natural resources and Swedish expertise to address a “significant production gap in terms of strategic industrial capability, sovereignty and national defense readiness,” according to a news release issued by Roshel, which is based in Brampton, Ont.

The project value is estimated at $100 million and will be executed in several stages, Roman Shimonov, Roshel’s chief executive officer, said in an email.

The first stage, to be completed within six months, will establish ballistic steel production, while rolling, leveling and heat-treatment processes to strengthen the metal will be underway at the same time, he said. Shimonov added the timeline for the second stage will depend on the volume of orders received.

The companies pledged to create skilled jobs and introduce new advanced manufacturing technology to Canada. The release did not include funding details or a construction timeline, and representatives were not immediately available for comment.

“This facility will not only meet Canada’s strategic needs but also exemplify how allied nations can collaborate to enhance their industrial capabilities,” Hans Bergman, Swebor’s board chairman, said in a statement.

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U.S. President Donald Trump

’s tariffs on steel have battered the Canadian industry, with exports of iron and steel products sliding more than 11% in June and some producers applying for federal loans.

Bloomberg.com