Business & Finance
U.S. Army spent $533 million on Texas shell factory that produced no usable munitions
Rushed planning and unvetted technology led to widespread mechanical failures at a defense plant operated by General Dynamics.
The short version
- The U.S. Army paid General Dynamics $533 million to construct an artillery factory in Texas, but the facility failed to produce a single usable 155 mm shell.
- The plant relied on unvetted machinery from Turkish firm Repkon without full prior testing or competitive bidding, leading to severe operational hazards and equipment breakdowns.
- In August 2025, the Army halted work on two of the factory's three production lines and stated it will not invest further funds in the plant.
- The Army is evaluating contract performance and seeking recoupment via future production discounts, though it has not required General Dynamics to directly return the money.
Key facts
- The U.S. Army awarded General Dynamics $533 million for a Texas factory to manufacture 155 mm artillery shell bodies following Russia's 2022 invasion of Ukraine.[ProPublica]
- The project utilized unvetted machinery from Turkish supplier Repkon without competitive bidding, and neither the Army nor General Dynamics inspected a full operational production line prior to deployment.[ProPublica]
- Former workers reported severe equipment malfunctions, including cracked shell steel, malfunctioning robotic arms, fires, and uncalibrated machinery.[ProPublica]
- Work on two of the facility's three production lines was halted by the Army in August 2025.[ProPublica]
- The Army paid General Dynamics $26.3 million in progress payments in December 2025 for two of the lines despite the lack of usable shells.[ProPublica]
- The Army stated it will not spend additional money on the plant and intends to recover funds through discounts on future production orders rather than demanding direct cash repayment.[ProPublica]
What remains uncertain
- General Dynamics claimed in a Department of Defense inspector general report that it met or exceeded contract requirements, and a spokesperson stated reporting fundamentally mischaracterized the situation without detailing specific errors.[ProPublica]
- Workers reported rumors of potential sabotage or spying by Repkon personnel, but the Army stated it found no evidence to support those claims.[ProPublica]