L3Harris Invests $400 Million to Expand Rocket Motor Production in Arkansas

L3Harris Technologies (LHX) is committing $400 million to establish a new rocket motor manufacturing facility in Camden, Arkansas. The 110-acre site will feature over 20 buildings and increase large solid rocket motor output sixfold—a critical capacity for U.S. defense programs. Shares dipped marginally to $285.44 on Tuesday but remain up 35% YTD.

Global conflicts in Ukraine and the Middle East are driving unprecedented demand for missile systems and air defense equipment. The Camden expansion follows L3Harris' $4.7 billion acquisition of Aerojet Rocketdyne, which positioned the company as a key supplier of small solid rocket motors. The new facility will add medium and large motor production for next-generation missiles.

The investment aligns with the Pentagon's Golden Dome initiative, a proposed missile defense shield requiring massive rocket motor inventories. Defense contractors nationwide face multi-year backlogs for propulsion systems as military spending hits record levels.