Kitchener, Ontario – A significant contract has been awarded to Colt Canada, a subsidiary of the Czech firearms manufacturer Colt CZ Group, to modernize the Canadian Armed Forces’ (CAF) aging rifle fleet. The deal, worth $273 million CAD (approximately $202 million USD), will see the delivery of 30,000 new modular assault rifles, with options for additional quantities, according to a press release issued Thursday by Colt CZ Group. This marks a major step in the Canadian Modular Assault Rifle Project (CMAR), aimed at replacing the C7/C8 rifles that have been in service for over 35 years.
The contract was formally announced at a launch event held at Colt Canada’s manufacturing plant in Kitchener, Ontario, attended by key figures including the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), and the Honourable David J. McGuinty, Minister of National Defence. The modernization effort is expected to bolster Canada’s domestic defense industry and create jobs, aligning with the country’s new Defence Industrial Strategy.
The initial $273 million CAD will cover the first phase of the project, delivering 30,000 rifles between 2026 and 2029. Yet, the total value of the contract could exceed $307 million CAD, as reported by the National Post, with plans to procure an additional 35,402 rifles in a second phase, four years after the initial delivery. This brings the potential total number of rifles to 65,402. The National Post also noted that the current C7/C8 rifles were “well past its expiration date” and should have been replaced several years ago.
A New Generation of Rifles for the Canadian Armed Forces
The CMAR project aims to equip the Canadian military with a modern, reliable assault rifle capable of meeting the evolving demands of modern warfare. The new rifles will replace the C7/C8, which, while dependable, are becoming increasingly outdated in terms of technology and adaptability. The Colt Canada solution, built around a modular design, promises improved ergonomics, accuracy, and integration with modern accessories.
According to the Canadian Defence Investment Agency (DIA), the new rifles will be used by both the regular forces and reservists. Secretary of State Fuhr emphasized the importance of providing the CAF with “modern, reliable capabilities,” stating that the contract “advances Canada’s new Defence Industrial Strategy by strengthening domestic production, creating good‑paying jobs, and growing our economy.”
Colt CZ Group’s Expanding Footprint
Colt CZ Group, headquartered in the Czech Republic, has a significant global presence, with manufacturing facilities in the Czech Republic, the United States, Canada, Sweden, Switzerland, and Hungary. The company employs approximately 4,500 people worldwide and produces a diverse range of firearms, ammunition, and energetic nitrocellulose. Its brands include Colt, CZ (Česká zbrojovka), Colt Canada, Colt Optics, Dan Wesson, Sellier & Bellot, swissAA, Spuhr, and 4M Tactical.
The parent company, Česká zbrojovka Partners SE, is reportedly controlled by René Holeček, who was ranked among the wealthiest individuals in the Czech Republic by Forbes magazine in 2023, with a net worth of 25 billion Czech crowns (approximately $1.07 billion USD as of March 19, 2026).
Impact on Canada’s Defence Industry
The awarding of this contract to Colt Canada is seen as a boost to Canada’s domestic defense industry. The project is expected to create and sustain jobs in Kitchener, Ontario, and across the country through the supply chain. It also demonstrates the Canadian government’s commitment to investing in local manufacturing capabilities and reducing reliance on foreign suppliers.
The DIA highlighted that this procurement aligns with Canada’s broader efforts to strengthen its defense industrial base. The agency is currently managing several other major procurement projects, including a multibillion-dollar contract for 12 new submarines, for which final proposals have already been submitted, according to the National Post.
Looking ahead, the focus will be on the timely delivery of the first 30,000 rifles, with the initial shipments expected to begin this year. The DIA will continue to monitor the progress of the CMAR project and work closely with Colt Canada to ensure that the new rifles meet the CAF’s requirements. Further updates on the project, including details on the second phase of procurement, are expected in the coming months.
This modernization of the Canadian Armed Forces’ rifle fleet represents a significant investment in national security and a commitment to providing soldiers with the tools they need to effectively defend Canada’s interests. Share your thoughts on this important development in the comments below.
