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Trade Surplus or War Surplus? Competing Visions Presented by the US and China
Site Expansions Underpin Lockheed Martin’s Munitions Production Ramp
As spades went into the ground to signal the start of construction of the new Building 47 at Lockheed Martin’s Munitions Production Center in Troy, Alabama, it marked a significant development in accelerating production of the company’s Terminal High Altitude Area Defense interceptor, better known as THAAD. The expansion of factory space in Troy is a key element of the company’s $8-9-billion commitment to expand its munitions production footprint across the United States.

The Department of War’s Acquisition Transformation Strategy is part of a long-term plan that signals clear demand for critical munitions and it enables industry to confidently invest in facilities and workforce development, along with supply chain expansion and advanced manufacturing capabilities. In addition to enlarging the facility in Troy, Lockheed Martin is also growing its plant in Camden, Arkansas, which is another site that’s vital for building more munitions at a faster pace.

“My job is to interface and collaborate with the Department of War in achieving the call to action to produce these critical munitions, not only at speed but also at scale, multiplying the current production rates by two, three, or even four times the current rates,” Dan Nimblett, Lockheed Martin’s vice president for Munitions Acceleration Integration told TWZ on the ground in Troy during the groundbreaking event.
“Fundamentally what’s occurred changes how acquisition works [with] long term demand agreements. These long term procurement agreements enable Lockheed Martin and our supply base to make the necessary investments with confidence of the future demand. This allows us to make the investments not only in our people and our facilities, but in the technology necessary to build [these munitions] at a scale and a speed that’s relevant to the threat today,” explained Nimblett.
Lockheed Martin was the first company in the U.S. defense industry to announce a framework agreement with the DoW for munitions acceleration of high-demand missiles – initially tripling production capacity of the PAC-3 Missile Segment Enhancement (MSE) interceptor, followed by a second agreement to quadruple the production capacity of advanced THAAD interceptors. These two defensive missiles are cornerstones of a layered air and missile defense system, and both have been integrated together via Joint All-Domain Operations, including with the U.S. Army’s Integrated Air and Missile Defense Battle Command System (IBCS).
In response to the DoW’s call to action, the company has already invested more than $2 billion in its production facilities and in the related tooling, its key suppliers, and its workforce in order to accelerate production rates.

Lockheed Martin plans to effectively double the factory footprint in Troy and dramatically increase the workforce. “We’re going to increase that [workforce] by drawing in college students, high school students, veterans, everybody’s welcome,” explains Jason Reynolds, vice president and general manager for integrated air and missile defense. “When they come to Lockheed Martin, they receive training, they get opportunity, and because these programs are on a ramp and in production in such high demand, this is where you come to start your career and you [can] work here for a long time.”
Lockheed Martin currently employs around 1,100 workers at its Camden site, but this is also growing. The Camden training center is seen as being critical in providing the swift increase in skilled operators needed to support this acceleration. “We work closely with the state of Arkansas as well on looking at what else we can do in the community and the infrastructure in that community to support people moving, hopefully into Camden as we ramp up,” says Reynolds.
“People here [in Troy] really know their work matters. It’s meaningful for both the community as well as for our national defense. So, we’re really proud of our employees and we’re on a growth trajectory. We’re hiring and we want as many qualified people to come join our team as possible.”
The Camden site is also accelerating its work on the long-range Precision Strike Missile (PrSM), which is also set to quadruple production over the next few years. Reynolds added that building missiles faster using automation and advanced manufacturing technologies, plus increasing the production line capacity, are some of the vital means for success.

“PAC-3 MSE and THAAD are the most capable air defense interceptors on the planet. They’re in extreme demand [and] we’re doing everything possible,” says Reynolds. “With PAC-3, we have been doubling that production over the last four years and now, like I said, we’re going to triple it. We’re working very carefully with our suppliers, with the U.S. government and with our partners and allies all around the world to get all the parts in and get them into factories like you see behind us today to assemble them and get them out to the warfighter as quickly as possible.”
Another way Lockheed Martin is accelerating the delivery of advanced air defense capabilities is the through the introduction this summer of the PAC-3 Adapted Capability Effector, or PAC-3 ACE. This new missile leverages the PAC-3 fire-control system and provides for full integration with the Patriot weapon suite.
The main differentiator of PAC-3 ACE is that it would be produced at less than half the unit cost of MSE and first flight could occur within 18 months. A core part of the rapid fielding strategy is an international, joint-development model. Lockheed Martin is partnering with both American and European industry, sharing production lines, supply chains and expertise.
Lockheed Martin says PAC-3 ACE provides a “cost-effective, multi-threat solution.” The interceptor is engineered to engage a broad spectrum of air-breathing threats, cruise missiles, and both short and medium-range ballistic missiles. By offering a low-cost “kill” per-engagement, it is designed to address the current climate that demands deeper ammunition reserves without compromising on performance.
The keys to munitions acceleration
This year, Lockheed Martin has made significant progress in a series of production acceleration projects for munitions programs under its Missiles and Fire Control division. “I was supposed to retire last year. I’m here because this is the most exciting time in the 30 years I’ve been in this industry,” says Dan Nimblett. “These long-term agreements provide us the certainty to enable us to make these investments.”
“What recent conflicts have demonstrated is that Lockheed Martin and the American defense industrial base never lost the technological edge. The technology and the capability has always been there – we have the best systems in the world. We’ve proven that through real world performance.”
Nimblett explained that Lockheed Martin’s supply chain is following suit, and that they are all now investing in similar ways to ensure they meet the demand signals. “We’re evaluating how we produce and increase additive manufacturing and robotics. We’re also looking at how we develop, which I think is a fundamental part of getting capability into the warfighters’ hands at a speed and scale that’s relevant to the threat.”

Having received Milestone C approval from the U.S. Army in July 2025, PrSM manufacturing has relied on a high level of automation. PrSM was engineered from the start for automated, robot-driven production – automating tasks once done by hand – and that early-stage streamlining is paying dividends as Lockheed Martin seeks to accelerate output.
“We have a lot of robotics built into our munitions production,” explains Gaylia Campbell, vice president, Tactical Missiles. “A lot of times we use robotics to help increase the safety of the assembly, like an explosive charge that has to be integrated into a munition, and we have a robotic arm that places that and tests the placement. We also robotically paint and coat [PrSM]. So, we have a lot of robotics already in Camden and that’s really going to help us with this ramp-up in production – the fact that so much of it is [already] automated.”
Campbell emphasizes that PrSM entered production with a mindset of acceleration. “We got PrSM through preliminary and critical design reviews, and into first flight in times roughly half of what it would normally have taken us. We’ve been amazingly successful on all these flights. Those early [test] flights went off one after the other during the COVID-19 pandemic, at a time when there were a lot of challenges for all of us in our daily lives, and yet we were able to continue to fly and prove the operational performance.”
Lockheed Martin is reshaping the munitions supply chain with an unprecedented slate of manufacturing initiatives that pull together new facilities, strategic partnerships, and workforce development. The company is also expanding a number of its other production facilities, such as a $60-million investment in its complex in Archbald, Pennsylvania, that will add 700 jobs in support of high‑priority programs including PrSM, THAAD, PAC‑3, and Apache sensors. In Orlando, Florida, three legacy paint bays have been merged into a high‑performance shop that can retool a work cell in hours rather than weeks, while Ocala’s new Progressive Work Smart Assembly Line has cut seeker and mission control unit build times by roughly 50 percent.

A partnership with General Motors will bring high‑rate commercial manufacturing expertise into Lockheed Martin’s production processes, and the new Rapid Fielding Center in Grand Prairie, Texas, is tasked to reduce traditional manufacturing development timelines. What once took years of design, testing and tooling is aimed to be prototyped, fabricated and validated in a matter of months.
Echoing endorsement of the DoW’s initiative, Campbell underscores that knowing what the demand signal will be is a critical differentiator when it comes to production ramp-up. “We can plan for some of those really critical rare earth minerals that we need, the batteries for example in our munitions, we need certain rare earth minerals for that. We need to know the total demand signal and that means we can negotiate with the suppliers and guarantee that we have access. That can really help us accelerate.”
To support the wider munitions efforts Lockheed Martin is also investing in solid rocket motor development and production, as well as lower-tier parts that go into solid rocket motors. “We’re working with different suppliers to develop new sources of supply for solid rocket motors,” says Campbell. “We’re investigating heavily right now in designing and prototyping several motors that we plan to test and take to production, and that really will develop a whole new supply chain and will really be critical for all munitions production.”
Having a five-year contract instead of annual contracts allows the manufacturer to have far more buying power to secure sub-components for a far better price point. “I can go and invest. Invest in more capacity, invest in my supplier’s capacity,” explains Campbell.
“Production is all about velocity. Keeping the line moving and not having to stop because we don’t have a part. Being able to order bigger quantities of things up front is really huge when it comes to acceleration.”
Contact the author: Jamie.Hunter@teamrecurrent.io
The post Site Expansions Underpin Lockheed Martin’s Munitions Production Ramp appeared first on TWZ.

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Achilles Shield: Greece and Israel sign €3 billion defense deal
Greece and Israel signed on Monday a €3 billion deal for the massive “Achilles Shield” agreement, under which Israel will build Greece a multi-layered air defense array based on Israeli systems architecture. The intergovernmental agreement for the development of an anti-aircraft, anti-ballistic missile and counter-drone shield – known as the “Achilles Shield” – reportedly features […]
The post Achilles Shield: Greece and Israel sign €3 billion defense deal appeared first on Keep Talking Greece.
L'Audace
La revue animée par Natacha Polony consacre un ensemble à la tentation hégémonique allemande en Europe ainsi qu'à la liste (fort longue) des différends qui opposent Paris et Berlin, notamment en matière d'industrie de défense. (N° 3, juin, trimestriel, 15,90 euros. — Paris)
Une Allemagne « prête à la guerre » ?
De l'hégémonie allemande, les peuples européens — les Grecs en particulier — conservent le souvenir amer des années 2010. Mais à cette époque prévalait encore l'arrangement noué en 1990 lors de la réunification : moteur économique du Vieux Continent, étroitement enchâssée dans les rets de l'intégration européenne, l'Allemagne laissait la France revendiquer la suprématie militaire et diplomatique. Ce compromis a vécu.
Depuis l'invasion russe en Ukraine, Berlin restructure son économie, militarise son industrie et dorlote son marchand de canons national Rheinmetall. Ce grand réarmement marginalise Paris et ménage Washington. Car, malgré les camouflets infligés par M. Donald Trump, l'Allemagne espère que les États-Unis lui sous-traiteront la direction européenne de l'Alliance atlantique.
Russia Is Now Using Longer-Range Iskander Ballistic Missiles: Ukraine Intel
Russia used a longer-range Iskander ballistic missile for the first time in an attack on Kyiv, Ukraine’s Defense Intelligence Directorate (GUR) said on Thursday. Missiles fired from deeper inside Russia would present additional challenges to Ukraine’s new campaign to attack the systems before they launch.
“In one of the combined missile strikes on the capital this summer, the enemy first used the updated 9M723-2 ballistic missiles, also known by the code name ‘Iskander-1000,’” GUR stated. “The updated missile, due to the increased engine and, accordingly, the increased launcher, is capable of hitting targets at a distance of up to 550 km (about 341 miles).”
According to GUR, the range of the previous Iskander variant, the 9M723-1, is 390 km, or about 242 miles.

In its statement about the new Iskander, GUR included photos of what appear to be recovered components of the weapon. However, the agency did not provide any specifics about what the components were, where they were found or when.


While GUR states that the new Iskander short-range ballistic missile (SRBM) was only recently fired at Ukraine, unconfirmed reports emerged in January that this weapon may have been introduced back then. Reports also began to appear last year that Russia was poised to start mass-producing a new version of the Iskander SRBM, with a range of about 600 miles and improved accuracy. Talk of the development of this new missile emerged after the termination by the United States of the Intermediate-Range Nuclear Forces Treaty (INF) in 2019. This had previously prohibited the Soviet Union (later Russia) and the United States from fielding any ground-launched conventional or nuclear-capable missile of any type that can hit targets between 500 and 5,500 kilometers (310 and 3,420 miles) away. Russia formally abandoned the treaty a short while after the U.S pulled out.
We have reached out to GUR for details.
A Telegram channel operated by Russian paratroopers lauded the development.
“Now, rearward facilities that were previously considered relatively safe are within range,” gloated the Paratrooper’s Diary. “The missile retains its ballistic trajectory, which means it can maneuver throughout its flight path, making interception more difficult for air defense systems.”
“According to preliminary data, the increase in the fuel compartment may have allowed for adjustments to the warhead mass, but the missile is still capable of carrying both cluster and high-explosive warheads with increased power,” the paratroopers continued. “The deployment of the ‘Iskander-1000’ indicates that the Russian defense industry is not only replenishing stockpiles but also scaling up a major modernization of missile weaponry.”
Reducing the size of the warhead and increasing fuel storage is a well proven way of extending the range of certain missiles without drastically chaining its outer mold line. Other improvements, such as new motors and guidance capabilities can also help in this regard.

Russia produces dozens of these weapons a month, noted missile expert Fabian Hoffmann.
“Recently, Ukrainian intelligence provided an updated estimate of Russian missile production capacity, stating that Russia produces around 60 9M723 ballistic missiles per month,” he pointed out in May.
“Based on recent employment trends, this figure is not entirely implausible (at least compared to when this number was first mentioned in 2024), though it should be treated as an upper-bound estimate,” Hoffmann added. “More realistically, Russia’s combined 9M723 and Kh-47M2 production capacity in mid-2026 may be between 600 and 800 units annually, with monthly production potentially fluctuating significantly depending on the availability of internationally sourced components. This would allow Russia to sustain an average employment rate of roughly 50 to 70 monthly ballistic missile strikes against Ukraine, with greater peaks possible if part of the production is stockpiled in a given month.”
To bolster its stocks of short-range ballistic missiles, Russia is receiving more KN-23 and KN-24 missiles from North Korea, which are loosely akin to the Iskander-M. Russia has also asked Pyongyang for an additional tranche of KN-30 missiles, also known as the Hwasong-11C, according to a separate GUR report issued today.
“The new KN-30 ballistic missiles, which are three times more powerful than the KN-23/24, were requested by Moscow from Pyongyang, but so far, the transfer of these missiles from North Korea to Russia has not been recorded,” GUR added.

The KN-30 is an enlarged derivative of the original Hwasong-11 and designed to carry larger warheads. North Korea has previously said it has tested subvariants of the Da/C type with 2.5-ton and 4.5-ton conventional high-explosive warheads, and that it can also be fitted with a nuclear warhead.
Ukraine has had to absorb a lot of damage because it ran out of Patriots months ago. However, President Volodymyr Zelensky recently said an unspecified number of additional interceptors would be delivered. Evidence has also emerged that a new supply of Patriots is being used against Russian missiles, including Iskanders. Still, the concern stands because of the precarious nature of Ukraine’s interceptor supply and Russia’s ability to make new and improved missiles.
— Militarnyi (@militarnyi) August 27, 2026
On the night of August 27, Ukrainian air defenses shot down seven Iskander-M/KN-23 ballistic missiles.https://t.co/ROasoQ78WT
As we noted earlier in this story, Ukraine has a new campaign, recently announced by Zelensky, to go after Russia’s ballistic missiles prior to launching to offset a dearth of interceptors. However, Russia’s ability to launch missiles another 100 or so miles further away from Ukraine will make them harder to find and hit.
“When our anti-ballistic missile stocks are at a minimum, there is another tactic,” Zelensky commented. “It is more difficult, and we developed it. It is hunting their nearby positions from which ballistic missiles are launched.”
Zelensky offered no details about how the campaign would be carried out. However, “Ukraine has already targeted Russian ballistic missile infrastructure in several operations this year” in Crimea and Rostov, Russia, with drones, Euromaidan Press reported.
— NOELREPORTS
Zelensky says Ukrainian forces struck an Iskander-M missile launcher on Russian territory near Ukraine's border. He called it another success and said operational details cannot be disclosed because of the mission's sensitivity, but confirmed the launcher was hit. #Ukraine pic.twitter.com/Ao0ooa8JYt
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(@NOELreports) August 23, 2026
It is always preferable to shoot the archer not the arrow, but doing so reliably is very challenging as the Iranians proved again in Epic Fury. Despite a concerted campaign by the U.S. and Israel to go after Iranian missile launchers, the Islamic Republic was still able to fire off numerous volleys, creating a swath of destruction across the region.
For Ukraine, this kind of effort would have to mirror its mid-range strike campaign against Russian logistics using longer-range drones. Ukrainians told us they are hitting targets up to 250 km away in the occupied territories. However, that’s been aided in no small measure by the use of Space X Starlink systems.
Carrying out a similar campaign in Russia would be challenging, because Space X owner Elon Musk is reluctant to allow their use deep inside Russia. As we previously noted, Ukraine is asking Musk for permission to “use Starlink-equipped drones against ballistic missile launchers up to 200km inside Russia,” the Financial Times reported last week.
However, Zelensky recently said Musk ultimately refused to grant that permission.
GUR is calling for increased efforts to cut off the supply of foreign assistance Russia receives.
“To counter the aggressor’s plans, it is crucial to consolidate efforts aimed at limiting Russia’s program for the development, production, and modernization of ballistic weapons,” the directorate proffered.
The Ukrainian intelligence information about the new Iskander was part of a report on the amount of foreign components found on these missiles. The information is published on the directorate’s War & Sanctions portal, which identifies foreign assistance to Russia’s weapons programs.
“Only a quarter of the 140 components published today are manufactured by Russian enterprises,” GUR stated.
Almost half – 63 – were manufactured by American firms, GUR explained. The Iskanders also contained components from Switzerland, Belarus, Germany, Taiwan and China.
“In one of the most important components of the missile guidance system — the flight information processing unit obtained from the laser gyroscope — only 5 out of 43 components are manufactured in the Russian Federation,” GUR added.

That foreign components would be found in Russian weapons is neither surprising nor new. TWZ has been chronicling this since the start of the war. These parts have been found in everything from helicopters to radars to cruise missiles. There was even a decoy drone found to be made completely of Chinese components.
These parts all found their way into Russian weapons despite international sanctions designed to prevent that from happening.
Russia isn’t the only country whose weapons – reliant on foreign components – have been used in attacks on Ukraine. A short-range ballistic missile (SRBM) produced by North Korea and used against Ukraine by Russia in 2024 relied on more than 290 foreign-sourced components, many of them originating from U.S. manufacturers. This is the alarming result of a study by Conflict Armament Research (CAR), a U.K.-based investigative organization.
China is also providing engines for Russia’s drones, including its jet-powered variants.
All this news about Russian missile supplies comes as President Vladimir Putin has threatened to escalate attacks on Ukraine over its strikes on Russian infrastructure and the faltering peace process. The Russian leader is also reportedly again mulling using tactical nuclear weapons to stop these attacks. That would be a world-changing escalation and TWZ cannot independently confirm those claims.
Though he hasn’t pulled the trigger on expanding attacks yet, Putin is clearly building the means to do so if he chooses.
Contact the author: howard@twz.com
The post Russia Is Now Using Longer-Range Iskander Ballistic Missiles: Ukraine Intel appeared first on TWZ.
