$1.3B munitions plant slated for Pine Bluff Arsenal

Hanwha Defense USA Inc. to build and operate new facility at Army installation

Jan. 28, 2026 at 5:47pm

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The U.S. Army announced plans to award a lease to Hanwha Defense USA Inc., a subsidiary of South Korea's Hanwha Group, to build and operate a $1.3 billion munitions factory at the Pine Bluff Arsenal in Arkansas. The preliminary agreement, pending final negotiations, would create 200 new jobs at the facility that would produce ingredients for explosives and propellants used in munitions like 155mm artillery shells.

Why it matters

The new munitions plant represents a significant investment in the Pine Bluff Arsenal, which has faced an uncertain future as the Army examines options for consolidating its industrial base. The facility's expansion is seen as a boost for the local economy and a way to ensure the arsenal remains a key part of the U.S. military's supply chain.

The details

Hanwha's new factory would produce ingredients for explosives and propellants, which can be used to build munitions like 155mm artillery shells. The agreement is still pending final negotiations and due diligence, but if finalized, the plant would create 200 new jobs. The Pine Bluff Arsenal currently houses the only North American facility capable of filling white phosphorus munitions, which produce difficult-to-extinguish smokescreens.

  • The U.S. Army announced the preliminary agreement on January 28, 2026.
  • The final negotiations and due diligence are expected to conclude in the coming months.

The players

Hanwha Defense USA Inc.

A subsidiary of South Korea's Hanwha Group that develops and supplies ground and sea combat systems, including unmanned platforms and ammunition.

Pine Bluff Arsenal

A U.S. Army installation in Arkansas that consists of more than 660 buildings across 13,500 acres and is home to the only North American facility capable of filling white phosphorus munitions.

Tom Cotton

A Republican U.S. Senator from Arkansas who said the investment will mean more jobs in the greater Pine Bluff region and more tools for the U.S. military.

John Boozman

A Republican U.S. Senator from Arkansas who said the congressional delegation has consistently worked to ensure the full utilization of the Pine Bluff Arsenal in support of U.S. warfighters.

Bruce Westerman

A Republican U.S. Representative from Arkansas who called the Pine Bluff Arsenal an "integral part of our Army's organic industrial base".

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What they’re saying

“This investment will mean more jobs in the greater Pine Bluff region and more tools for our men and women in uniform.”

— Tom Cotton, U.S. Senator

“Our congressional delegation has consistently worked to ensure its full utilization in support of U.S. warfighters. We are excited to welcome Hanwha Defense USA to Arkansas and are confident our skilled workforce is prepared to help supply the critical materials needed for munitions that protect our military personnel, allies and interests.”

— John Boozman, U.S. Senator

“This partnership is a great development for the economic future of central Arkansas and the future of our nation's defense.”

— Tom Cotton, U.S. Senator

What’s next

The final negotiations and due diligence between the U.S. Army and Hanwha Defense USA Inc. are expected to conclude in the coming months, after which the lease agreement could be finalized.

The takeaway

The new $1.3 billion munitions plant at the Pine Bluff Arsenal represents a significant investment in the facility's future, ensuring it remains a key part of the U.S. military's industrial base and providing an economic boost to the local region. The bipartisan support from Arkansas' congressional delegation underscores the strategic importance of the arsenal.