The Canadian government on Wednesday unveiled its inaugural project under the new Buy Canadian Policy, committing federal dollars to 55 subway cars for Toronto featuring domestic assembly and majority Canadian components.
Infrastructure Minister Gregor Robertson and Jobs Minister Patty Hajdu disclosed the investment in Thunder Bay, where Alstom will manufacture the rolling stock for the Toronto Transit Commission’s Line 2. Ontario will provide matching funds for the joint procurement, which requires 55% domestic content.
The project is the first application of Canada’s procurement framework that took effect on December 16, 2025. The framework establishes mandatory preferences for domestic suppliers and locally sourced materials in major government purchases.
Robertson said the trains will be built for Canadians by Canadians, supporting jobs across the country while delivering reliable public transit.
“To build the strongest economy in the G7, we need to ensure our investments are protecting jobs and championing industries right here in Canada,” Robertson said in a statement.
Federal officials project the subway car contract will generate over 900 direct employment opportunities while creating economic activity supporting roughly 1,700 workers across multiple industries, according to government data.
Hajdu said the announcement strengthens Canada’s economic sovereignty and maintains employment in Thunder Bay.
“Workers are the backbone of our economy, driving success in every corner of the country,” Hajdu said. “Today’s Alstom announcement strengthens Canada’s economic sovereignty and keeps good jobs right here in Thunder Bay.”
The procurement framework covers government contracts exceeding $25 million, with officials planning to lower the threshold to $5 million starting in spring 2026. Federal construction and defense projects must incorporate domestically manufactured steel, aluminum, and lumber when procuring materials worth $250,000 or more, provided Canadian suppliers can meet demand.
Prime Minister Mark Carney introduced the framework on September 5, 2025, as part of measures responding to US tariffs and trade tensions affecting Canadian industries.
Officials expect the framework to channel approximately $70 billion in government spending toward domestic manufacturers and service providers through infrastructure programs and federal grants. Budget 2025 designated $186 million to implement the framework, including $79.9 million across five years for a program helping small and medium businesses compete for federal contracts.
Ontario separately committed $70 billion for transit expansion across the province, which officials characterize as North America’s largest. The expansion encompasses the Ontario Line, Yonge North Subway Extension, Scarborough Subway Extension, and Eglinton Crosstown West Extension.
The Toronto subway procurement draws on Canada Public Transit Fund baseline allocations, which delivers ongoing financial support to municipalities operating established transit networks.
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