Kongsberg to build $101M missile plant in James City County

Kongsberg Defence & Aerospace, a subsidiary of Norway’s Kongsberg Group, plans to establish its first U.S. defense assembly plant in James City County, investing more than $100 million and creating an estimated 180 jobs, Gov. Glenn Youngkin announced Tuesday.  

The company expects to invest $71 million in a 150,000-square-foot facility in James City County, as well as an additional $30 million on engineering and software, according to the governor’s office. Founded in 1814, Kongsberg Defence & Aerospace is one of three business units at Kongsberg Group, an international tech company that provides products and systems to military, offshore industries and renewable energy customers, among other business sectors. KDA is based in Alexandria. 

According to a news release, the James City County plant will be tasked with maintaining and refreshing cruise missiles that the Department of Defense will procure for the U.S. Navy. The naval strike missiles are for littoral combat ships and the new Constellation-class frigate. Also, the Air Force is purchasing Kongsberg joint strike missiles for F-35 fighters. The new plant, according to Kongsberg, will be its “first production facility in the U.S., and it will expand domestic suppliers, building capacity and redundancy for these critical capabilities worldwide.”

“Following our productive meetings in Europe, Kongsberg’s decision to establish its first U.S. defense assembly facility in Virginia reaffirms our status as America’s top state for business,” Youngkin said in a statement Tuesday. “Not only will this investment create more than 180 new jobs, but it will also showcase our strategic location to attract global leaders in defense industries. We are proud to welcome them to the commonwealth and look forward to supporting their growth.”

“On our recent trade mission to Europe, we met with leaders of Kongsberg,” Virginia Secretary of Commerce and Trade Caren Merrick said. “The exciting announcement will provide excellent opportunities for Virginia’s talented workforce, and we are excited about the impact this will have on the commonwealth’s high-tech defense manufacturing economy. Kongsberg’s investment in a 150,000-square-foot facility in James City County is a perfect example of why Virginia is an ideal destination for businesses around the world.”

Also on Tuesday, Kongsberg announced plans to invest $10 million to expand a U.S. remote weapon systems factory in Johnstown, Pennsylvania, where more than 220 people are employed.  

Youngkin met with Kongsberg executives at the Farnborough International Airshow in England in July and at the Paris Airshow in 2023, according to a spokesperson for the governor.

Youngkin approved a $1.5 million grant from the Commonwealth’s Opportunity Fund to assist the county in securing the James City County project, and he approved a $750,000 Virginia Investment Performance Grant. Also, the Virginia Economic Development Partnership’s Virginia Talent Accelerator Program will assist Kongsberg in recruitment and workforce training efforts at no cost to the company.

The decision to pick James City County for the facility “was heavily influenced by the continuous availability of well-trained and highly skilled workers coming from the various military installations in the region,” Heather Armentrout, president and general manager of Kongsberg Defence & Aerospace, said in a statement. In February, Armentrout was hired to oversee the Norwegian company’s U.S. activities; she previously worked for Northrop Grumman and the CIA. Tuesday’s announcement is part of Kongsberg’s worldwide expansion of missile plants and facilities.

In June, Kongsberg opened a new missile manufacturing plant in Norway where it will produce its Naval Strike Missile (NSM) and its Joint Strike Missile (JSM).  

“The interest in NSM and JSM has grown over the past decade and is now the leading fifth-generation strike missile in 13 countries, including Norway, NATO countries and other close allies,” Eirik Lie, president of Kongsberg Defence & Aerospace AS and executive vice president of Kongsberg Group, said in a June 20 news release.

In August, Kongsberg announced plans to build a factory in Newcastle, Australia, that will manufacture and service missiles used by the Australian Defence Force. 

“The new missile production facilities in the U.S., Australia and Norway address the strong and long-term demand for our unique technology and the critical need to strengthen collective defense capabilities,” Geir Håøy, Kongsberg Group’s president and CEO, said in a statement Tuesday.