MDA Space Ltd., the Brampton-based company famous for developing the iconic Canadarm, has officially launched a new defense-focused subsidiary named 49North Ltd. This strategic move aims to capitalize on Canada's accelerated defense spending, with the company eyeing multi-billion-dollar contracts in the burgeoning military sector.
A Natural Evolution for MDA Space
According to MDA Space CEO Mike Greenley, 49North represents a "natural extension and evolution" of the company's mission to deliver defense capabilities both within and beyond the realm of space. "We have this collection of defense activity that's not involved in space," Greenley explained. "We were looking at ways to focus our business in the areas that matter and bring to light the non-space defense work we do."
The subsidiary, headquartered in Ottawa, will be led by Joe Armstrong, a seasoned executive with prior experience at CAE Inc., where he managed global defense operations across more than 40 countries. 49North has been in development since June of last year and is now poised to become a key player in Canada's defense industrial landscape.
Focus on Advanced Military Technologies
49North will concentrate on developing and advancing a range of cutting-edge technologies designed to enhance military capabilities. These include sensors, communications systems, and autonomous systems such as unmanned aerial vehicles (UAVs). The company is already involved in established projects, including UAV programs for the Canadian Air Force and the Royal Canadian Navy, as well as electronic warfare systems for naval vessels.
Staffed by hundreds of employees across Canada, 49North plans to actively recruit additional workers to support its expanding operations. The core objective is to service Canada's military buildup and bolster defense capabilities, aligning with Ottawa's recent defense commitments outlined in the latest budget and the long-awaited Defence Industrial Strategy.
Positioned for Major Domestic Contracts
Greenley emphasized that 49North is well-positioned to secure significant domestic contracts, thanks to its backing by MDA Space. "The highest priority is to deliver defense capabilities to the Canadian Armed Forces and to support that capability once delivered," he stated. "As part of MDA Space, 49North has the ability to take on very large, multi-billion-dollar programs, unlike small, new defense companies that might only handle smaller projects."
The Canadian government's new defense strategy prioritizes homegrown suppliers in key areas such as aerospace, unmanned autonomous systems, sensors, and specialized manufacturing. It aims to increase the share of defense contracts awarded to Canadian companies by 70% and foster partnerships to "build world-leading champions." Ottawa's goals include growing domestic defense industry revenues by over 240% by 2035 and boosting defense exports by 50%.
Broader Industry Movements
The launch of 49North comes amid a flurry of activity across Canada's defense sector, as businesses and provinces seek to tap into the $82 billion earmarked by Ottawa for defense spending. For instance, Prince Edward Island Premier Rob Lantz recently announced the establishment of an advisory panel to help local companies pursue defense-related opportunities. Similarly, British Columbia recruited former defense minister Harjit Sajjan last year to identify areas where the province could secure defense funding.
In January, Sajjan launched his own defense technology startup focused on autonomous systems software for military and civilian use. Additionally, a series of defense and dual-use startups and venture funds have emerged, including Ottawa's Dominion Dynamics Inc., which secured Canada's largest early-stage defense tech fundraising round in January.
With 49North now operational, MDA Space is positioning itself at the forefront of Canada's defense innovation drive, leveraging its expertise to compete for lucrative contracts and support national security objectives in an increasingly competitive global market.
