🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

US Army opens new 155mm artillery munitions plant in Texas

Published 05/29/2024, 04:53 PM
Updated 05/29/2024, 04:55 PM
© Reuters.
GD
-

By Mike Stone

WASHINGTON (Reuters) - The U.S. Army inaugurated its new Universal Artillery Projectile Lines facility in Mesquite, Texas, on Wednesday, marking a significant step in producing more 155mm artillery and modernizing domestic munitions production capabilities.

The plant, managed by General Dynamics (NYSE:GD) Ordnance and Tactical Systems, is part of a broader effort by the Army to update its industrial base and achieve a goal of making 155mm artillery shells at a rate of 100,000 a month.

Demand for 155mm artillery rounds has soared in the wake of the invasion of Ukraine in February 2022. But allies' supplies for their own defense have been run down as they have rushed shells to Kyiv, which fires thousands of rounds per day.

Secretary of the Army Christine Wormuth highlighted the importance of the facility, noting the plant's role in enhancing national defense by increasing production. "The work done in these production facilities contributes directly to our nation's defense and makes us stronger," Wormuth stated at the opening ceremony.

The more than $500 million facility was funded through supplemental spending bills from fiscal 2022 and 2023 and features advanced manufacturing technologies and automation for producing large-caliber metal parts. It is designed to flexibly produce various munitions sizes with minimal adjustments, to facilitate the Army's modernization goals.

Upon completion, the Army will own the capital equipment and lease it back to General Dynamics.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.