Aerojet Rocketdyne (NYSE: AJRD) has secured a $215.6 million cooperative agreement from the Department of Defense to modernize and expand its facilities at three sites that produce rocket propulsion systems as part of efforts to help DOD meet the increasing demand for tactical missile systems.
The company will use the funds from the agreement to buy equipment, consolidate production lines, develop systems for data processing and speed up production and delivery of Stinger and Javelin missiles and Guided Multiple Launch Rocket Systems to DOD, the department said Friday.
The agreement with DOD’s office of manufacturing capability expansion and investment prioritization was funded by the Additional Ukraine Supplemental Appropriations Act.
“This critical investment will modernize rocket propellant and motor production in the United States, in addition to creating technical and skilled labor jobs at multiple domestic facilities,” said Kathleen Hicks, deputy secretary of defense and a 2023 Wash100 awardee.
Aerojet said it will implement digital transformation initiatives in alignment with the Pentagon’s Digital Modernization Strategy meant to deliver a competitive advantage to the Joint Force in combat.
“These funds will build upon our own significant investments in modern, efficient facilities and innovative technologies and processes to design and develop advanced propulsion systems to support the defense missions of tomorrow,” said Eileen Drake, president and CEO of Aerojet Rocketdyne.
The company’s recent investments include opening a 379,000-square-foot facility in Huntsville, Alabama, to broaden production capacity and a 51,000-square-foot facility in Camden, Arkansas, to boost production capacity and consolidate solid rocket motor manufacturing efforts.
In December, L3Harris Technologies (NYSE: LHX) struck a $4.7 billion cash deal to acquire Aerojet Rocketdyne (NYSE: AJRD). The transaction received approval from Aerojet shareholders in March and is expected to close in 2023, pending receipt of regulatory clearances and satisfaction of other customary closing conditions.