Stellantis (STLA) has signed a memorandum with Roshel, a Canadian armored vehicle manufacturer, outlining steps toward the sale of an idled car factory near Toronto, Bloomberg reported Friday.

Brampton-based Roshel is trying to get a Canadian military contract worth as much as CA$4.9 billion ($3.5 billion) to manufacture light utility vehicles, according to the report.

Roshel proposed working with partners in the automotive sector to bring new vehicle business to the plant, alongside its own plans to build armored vehicles and pursue other defense contracts, Bloomberg said.

Stellantis and Roshel did not immediately respond to requests for comment by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 5.43, Change: +0.15, Percent Change: +2.75