CIEL Defence MoU With ASELSAN: CIEL Defence Inc. and Turkish defence company ASELSAN have signed an agreement to explore new defence manufacturing opportunities in Canada. The deal was signed on October 23, 2026, and aims to help build more defence industry capabilities under majority Canadian ownership.
CIEL Defence is the defence investment arm of Canadian private investment firm CIEL Capital Inc. The two companies will look at ways to work together and help Canada develop its own defence production facilities. The agreement is an early step and doesn’t confirm any new factory or investment yet. Any future project will need a separate commercial agreement.
What Will CIEL Defence and ASELSAN Work On?
Under the Memorandum of Understanding (MoU), both companies will explore several areas of cooperation. These include sharing technology and technical knowledge, setting up local manufacturing and assembly operations, and bringing different defence systems together.
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They’ll also look at ways to involve more Canadian companies in the defence supply chain. The goal is to support local production and create skilled jobs in Canada.
The agreement also comes at a time when Canada is working to strengthen its own defence industry. The country’s Defence Industrial Strategy gives importance to domestic production and reducing dependence on foreign suppliers. It also aims to increase Canadian ownership of important defence technology.
ASELSAN was founded in 1975 and is Türkiye’s leading defence technology company. It develops equipment and systems for military and civilian use. Its main areas include radar, electronic warfare, guidance systems, electro-optics and communication technology. In the 2026 Defense News Top 100 list, ASELSAN secured 40th place, moving up from 43rd the previous year.
CIEL Capital’s Existing Defence Business in Canada
CIEL Capital was founded by Wayne and David Albo in 2012. The company invests in Canadian businesses and supports their growth over the long term. It currently has eight operating businesses with around 700 employees and nearly CAD $200 million in combined yearly revenue.
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Unlike investment firms that plan to sell businesses after a fixed period, CIEL Capital says it doesn’t follow a set exit timeline. It provides long-term funding to help companies improve their facilities, hire and train workers and build stronger operations.
One of its key businesses is HFI Pyrotechnics Inc., a Canadian manufacturer of search and rescue products and military training equipment. Founded in 1873, the company has more than 150 years of history and is part of Canada’s Munitions Supply Program. CIEL Capital acquired majority ownership in HFI in 2023. The company has also expanded its land area to around 3,000 acres in Prescott, Ontario, about 45 minutes south of Ottawa.
David Albo, Founder and Managing Partner of CIEL Capital, said:
“Canada needs a defence industrial base built on well-capitalized Canadian companies with owners and partners dedicated to building sovereign capability through IP development,”
He added that ASELSAN’s experience and technology could help build lasting defence manufacturing capabilities in Canada.
ASELSAN President and CEO Ahmet Akyol also welcomed the agreement, saying:
“Canada is a priority market for ASELSAN, and we welcome the opportunity to strengthen the strategic partnership between Türkiye and Canada. Our cooperation with CIEL Capital reflects our commitment to building a lasting presence in Canada through potential areas of collaboration, joint production and joint marketing. We are ready to invest in Canadian talent and build a sustainable business that creates long-term value for both companies and our countries,”
