Investing.com -- Stellantis NV has signed a memorandum with Roshel Inc., a Canadian armored vehicle manufacturer, outlining steps toward the sale of an idle car factory near Toronto.

Roshel, which is headquartered near the Stellantis plant in Brampton, Ontario, is pursuing a Canadian military contract worth as much as C$4.9 billion ($3.5 billion) to build light utility vehicles. The company has informed Prime Minister Mark Carney's government it could reactivate the facility quickly if it secures the contract.

Roman Shimonov, Roshel's chief executive officer, said his company is the only serious potential buyer for the facility. He described the memorandum as the first step in a complicated process.

"It's a document that clearly specifies the plan, the responsibilities, the framework and everything else," Shimonov said. "We have a clear plan and this MOU is outlining the whole process."

LouAnn Gosselin, a Stellantis spokesperson, confirmed the two companies have signed the document. She said Stellantis believes Roshel represents a strong path to restoring operations at Brampton Assembly and preserving the site's role in Canada's manufacturing sector.

The Stellantis plant employed about 3,000 unionized workers when it was making vehicles. Production stopped in late 2023. A plan to build the Jeep Compass SUV at the facility was canceled last year after US President Donald Trump announced plans to impose tariffs on foreign-made vehicles.

The canceled production drew criticism from the Canadian government, which had provided hundreds of millions of dollars in financial support to Stellantis. The automaker is currently in negotiations with Unifor, which represents the plant's workers.