- NewMarket Corp's (NEU, Financial) subsidiary AMPAC announces a $100 million investment to expand ammonium perchlorate production by over 50%.
- The expansion targets growing demand from U.S. military and space programs, with completion expected in 2026.
- The project is subject to NewMarket's board approval, emphasizing AMPAC's strategic role in the defense and aerospace sectors.
American Pacific Corporation (AMPAC), a subsidiary of NewMarket Corporation (NYSE: NEU), has unveiled plans for a significant capital investment amounting to $100 million. This strategic initiative aims to expand the production capabilities of ammonium perchlorate, a critical component for solid rocket motors, which is expected to increase capacity by more than 50% with the construction of an additional production line. The expansion is scheduled for completion in 2026, subject to approval by NewMarket's board of directors.
Based in Cedar City, Utah, AMPAC is a leading North American manufacturer of performance additives crucial for space launch and national defense programs. With a commitment to supporting the rising demand from U.S. military and space launch initiatives, as well as accommodating the needs of U.S. allies, this investment underscores AMPAC's strategic positioning within the sector.
AMPAC, which operates a single facility with approximately 170 full-time employees, was acquired by NewMarket in January 2024. This acquisition has enhanced NewMarket's exposure to mission-critical and resilient sectors. The company also produces Halotron BrX, an environmentally friendly fire extinguishing agent. The potential expansion into new markets, coupled with vertical integration benefits, positions NewMarket strategically in the defense and aerospace supply chain, capitalizing on the increasing global demand for missile production and space launches.
