Army awards $435M contract for domestic TNT production facility

The Army has awarded Repkon USA a contract with a ceiling of $435 million to build a TNT production facility in Graham, KY -- which would make it the only domestic production facility for the material in the United States.

TNT is used in ammunition, bombs and grenades, and is the “primary explosive fill” for 155mm artillery shells, according to the Army. The current supply chain for the material relies on overseas sources.

Maj. Gen. John Reim, the joint program executive officer for armaments and ammunition, said today that the “state-of-the-art facility is essential to the JPEO A&A’s mission to develop, procure and field safe, reliable and lethal munitions to our joint warfighters and international partners.”

“This project will also further strengthen our defense industrial base, enabling munitions production at speed and scale,” he said.

Army acquisition chief Doug Bush said today that the award is a “major step forward in rebuilding our industrial base and ensuring we have the critical capabilities to support our warfighters.”

“Reshoring TNT production gives us the ability to control and secure our supply chain for this vital component, especially in an era of increasing global challenges,” he said.

A year ago, Bush had said $650 million had been set aside in the Ukraine security supplemental spending package for a domestic TNT production facility. The package was passed by Congress this past spring.

Friday’s announcement comes as the Army continues to increase its production of 155mm ammunition in response to the U.S.’s support for Ukraine in its war with Russia. The Army has set a goal of reaching 100,000 rounds per month by the end of fiscal year 2025.

Deputy Pentagon Press Secretary Sabrina Singh said Thursday that there is $4 billion in Presidential Drawdown Authority remaining, and multiple announcements of U.S. weapons transfers to Ukraine can be expected in the weeks before President Biden leaves office on Jan. 20 and former President Trump begins his second term.