Lockheed Martin Expands Missile Manufacturing

Lockheed Martin Expands Missile Manufacturing Capacity with Alabama Facility Groundbreaking

Defence Technology

Lockheed Martin's major missile manufacturing expansion in Alabama signals U.S. commitment to strengthening defense industrial capabilities.

Lockheed Martin breaks ground on 87,000-square-foot munitions facility in Troy, Alabama.
New plant will nearly double manufacturing capacity for THAAD and Next Generation Interceptors.
Company commits $8 billion to $9 billion investment through 2030 across multiple sites.
Framework agreements enable quadrupling of THAAD production to 400 units annually.
Expansion expected to create thousands of jobs while strengthening U.S. defense industrial base.

On Thursday, Lockheed Martin commemorated an important landmark with the groundbreaking of Building 47, an 87,000-square-foot Munitions Production Center at the company’s Troy, Alabama Campus. The facility is seen as a significant addition to the country’s missile manufacturing capabilities as the United States works to enhance its defense industrial base against changing world-wide security threats. The new facility will contain modern production lines for THAAD Interceptors and Next Generation Interceptor missiles, which represent almost a twofold increase in the current production capabilities at the Troy location.

According to Jim Taiclet, Chairman, President, and CEO of Lockheed Martin, this investment has wider significance than just for the company. He made this point during the ground-breaking ceremony by stating that the investment represents a major step forward in our nation’s defense industrial base, and that the company intends to invest approximately $8 billion to $9 billion from now through 2030, while having already spent roughly $1.25 billion on advance expenditures prior to finalizing any contracts. This new facility builds upon extensive procurement agreements Lockheed Martin negotiated earlier this year. A framework agreement for the next seven years allows Lockheed Martin to increase from the current production capability of THAAD interceptors from 96 units per year to 400 units per year.

The company is also going to increase its production of Patriot PAC-3 missile interceptors by more than 300% to 2,000 units per year, and has signed an additional framework agreement with Lockheed Martin to increase its production of Precision Strike Missiles by 400%. Michael Duffy, the Pentagon's chief buyer for weapons, continues to share with the public the value of a long-term commitment to procure products that provide the ability for significant industrial investment. This is evident in the statement made by Duffy at the Thursday ceremony, where he referred to today being the time that `verbiage transforms into action'. A multi-year purchasing agreement will give defense contractors the necessary visibility of expected demand so that they can justify major capital expenditures in order to expand their business and invest in the future.

The Troy, Alabama facility currently is supporting the final assembly of multiple missile systems, including Javelin, THAAD, Hellfire and JASSM, among others, and providing significant opportunities for employees because of the expansion of Building 47. Building 47 is slated to create a large number of jobs over the next three years to add to Lockheed Martin's current Alabama workforce of nearly 4,000 employees, and Lockheed Martin plans to add approximately 4,500 additional front line employees to its total number of employees in the United States as a part of its overall manufacturing expansion strategy.

Business Honor is of the view that Lockheed Martin's Building 47 represents a strategic shift in missile manufacturing acceleration and multi-platform production integration capabilities.