Defense Department Awards $635 Million Contract for Expansion at Iowa Army Ammunition Plant

MIDDLETOWN – A major investment is coming to the Iowa Army Ammunition Plant (IAAP) in Middletown, Iowa. The U.S. Department of Defense announced Friday that the Army Contracting Command at Rock Island, Illinois, has signed a $635.2 million agreement with MSM Group North America to add a new production line at the facility.

The project calls for the Florida-based company to design, construct, and bring online a load, assemble, and pack facility at IAAP. The contract was funded through Army allocations in the Fiscal Year 2024 and 2025 defense budgets.

Only one bid was received for the project, which carries an estimated completion date of August 10, 2029.

IAAP has been in operation since World War II, when it opened in 1941 under the name Iowa Ordnance Plant. Today, it remains a cornerstone of U.S. military readiness, manufacturing medium- and large-caliber ammunition for the Department of Defense.

AT THIS TIME: KILJ News is waiting response from Joint Munitions Command out of Rock Island for a response on this expansion. More details will be released as they develop.