US Army Invests $635 Million to Build Future Artillery Complex in Iowa

Washington, D.C., August 2025 – The U.S. Army has awarded a $635 million contract to MSM Group North America to design, build, and commission the Future Artillery Complex (FAC) at the Iowa Army Ammunition Plant. The project represents one of the most significant investments in the Army’s industrial base in decades, aimed at bringing the munitions production enterprise into the 21st century.

The Future Artillery Complex is a central piece of the Army’s wider program to modernize the Organic Industrial Base (OIB), which is responsible for producing ammunition for all branches of the U.S. military as well as allied nations.

A Leap Forward in Ammunition Production

The new facility will focus on 155mm artillery production, a munition currently in exceptionally high demand due to both U.S. Army requirements and support for international partners.

The FAC will integrate 21st century manufacturing technologies including:

• Robotics and automation to reduce risks to operators.

• Lean manufacturing principles to eliminate inefficiencies.

• Integrated system controls to ensure precision, consistency, and safety.

• Flexible production lines capable of quickly switching between different products with minimal downtime.

This design will allow the Army to scale production up during wartime surges and down during peacetime, ensuring both efficiency and readiness.

Leaders Emphasize Strategic Importance

Maj. Gen. John T. Reim, Joint Program Executive Officer Armaments & Ammunition and Commanding General at Picatinny Arsenal, underscored the importance of the initiative.

“Modernizing the industrial base and replacing critical munition stockpiles are high priorities for the Defense Department. Projects like the FAC are geared to improve the Army’s ability to scale production between surge and down times while also providing flexible capacity to produce future go-to-war rounds,” he said.

Reim further explained that Congress has allocated $5 billion to expand and modernize the defense industrial base, much of which dates back to World War II. Many existing facilities are over 80 years old, still relying on outdated processes. The FAC, he stressed, represents much-needed investment to ensure the “Arsenal of Democracy” can continue to meet the evolving demands of warfare in 2025 and beyond.

Building the “Arsenal of the Future”

The Iowa Army Ammunition Plant, located near Middletown, Iowa, is one of the Army’s most critical munitions sites. It has produced everything from small arms cartridges to large artillery rounds for decades. With the FAC, the site will be transformed into a modern hub of scalable, flexible munitions production.

The facility will not only increase U.S. capacity for 155mm artillery shells—a munition heavily used in conflicts worldwide—but also provide the ability to adapt for future advanced munitions.

Reim highlighted this connection between industrial capability and battlefield success, noting: “It is not lost on us that victory on the battlefield starts in our production facilities. The FAC will enable munitions production at speed and scale, thereby increasing Army readiness and Warfighter lethality.”

Context: Modernizing an Aged Industrial Base

The Army’s Organic Industrial Base Modernization Plan 2035 outlines over $16 billion in investments across multiple ammunition plants, depots, and arsenals. Key objectives include:

• Reducing reliance on single-source suppliers.

• Upgrading outdated World War II-era facilities.

• Ensuring surge capacity in the event of major conflicts.

• Implementing green technologies where possible to reduce environmental impacts.

Alongside the FAC in Iowa, similar modernization programs are being carried out at other U.S. ammunition plants to increase output of 155mm shells, rockets, and precision-guided munitions.

Meeting Modern Challenges

Demand for artillery rounds has grown sharply, driven by both U.S. training and readiness requirements as well as the ongoing need to support allied nations in active conflicts. By creating a state-of-the-art facility, the Army aims to ensure that the U.S. and its partners are never short of critical ammunition during wartime.

The FAC is expected to be fully operational before the end of this decade, marking a generational upgrade to the way the United States produces artillery ammunition.

The awarding of the $635 million Future Artillery Complex contract is more than just a construction project—it is a strategic investment in America’s warfighting capability. By combining automation, digital integration, and flexible production, the Army is ensuring its munitions base will be faster, safer, and more adaptable than ever before.

With this project, the Army is not only modernizing outdated facilities but also laying the foundation for the next era of ammunition production, ensuring that U.S. and allied forces remain well supplied for the challenges of tomorrow’s battlefields.