Ontario has unveiled more than $200 million in funds for shipbuilding in the province, positioning the announcement as part of Canada’s push to bolster defence spending.

On Wednesday, Transportation Minister Prabmeet Sarkaria confirmed the money, which had been trailed in the 2025 budget.

“With our NATO allies meeting this week, Ontario workers are ready to step up and build the ships that will protect Ontario and Canada,” he said in a statement.

“As the federal government increases its defence commitment to meet our NATO spending targets, our government is ensuring Ontario workers and businesses have the skills and equipment they need to help.”

This week, Prime Minister Mark Carney confirmed Canada would sign on to a new NATO target to spend five per cent of its gross domestic product on defence.

Details of exactly how the majority of the money will be spent have not been confirmed. The government said it was to boost the broader marine sector and offer more training opportunities for those working in it.

Fifteen million dollars will be put into a shipbuilding grant program for skills training, infrastructure investments and new equipment to build ships.

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The federal government estimates that contracts under its national shipbuilding strategy are worth $2.8 billion per year in gross domestic product and have led to 21,400 jobs in just over a decade.

The Ontario Shipyards are currently working on extending the lives of Canadian Coast Guard ships, according to information released by the feds in March.

Shaun Padulo, president and CEO of Ontario Shipyards, thanked the province for the new funding in a statement.

“At a time when industrial jobs are under pressure across North America, Ontario has taken bold, strategic action to support a growing sector critical to our economy and national security,” he wrote.