PHOTO: U.S. Senator John Boozman discusses an affordable housing project for veterans in Fayetteville on Jan. 21, 2026. | Antoinette Grajeda/Arkansas Advocate
By ANTOINETTE GRAJEDA | Arkansas Advocate
A defense company plans to invest $1.3 billion into the Pine Bluff Arsenal, the Army announced Wednesday.
The Army will lease property to Virginia-based Hanwha Defense USA to build and operate a new munitions facility at Pine Bluff Arsenal, which will “modernize the U.S. munitions supply chain and enhance warfighter lethality,” according to an Army news release.
The lease was awarded through an “enhanced use” program that allows the Army to lease underused property to private partners, with the option to reinvest proceeds into critical infrastructure. The agreement is pending final lease negotiations.
“This partnership with Hanwha is a model that the Army will use to further strengthen and build a modern commercial and organic industrial base,” said Brent Ingraham, assistant secretary of the Army for acquisition, logistics and technology.
Last year, members of Arkansas’ congressional delegation sent a letter to Army Secretary Dan Driscoll expressing opposition to plans to potentially downsize the Pine Bluff Arsenal.
The new project is expected to create around 200 jobs in the region. Republican U.S. Sen. John Boozman said he’s confident the state’s skilled workforce is prepared to support this venture.
“Pine Bluff Arsenal is a vital national security asset and this new chapter will build on its important contributions,” Boozman said.
U.S. Sen. Tom Cotton also praised the announcement.
“This investment will mean more jobs in the greater Pine Bluff region and more tools for our men and women in uniform,” he said in a news release.
This partnership will bring the manufacturing of essential ingredients for explosives and propellants to the United States, “a critical step in strengthening the nation’s defense organic industrial base,” according to the Army’s release.
“Not only will this project introduce advanced manufacturing technologies, but it will create skilled jobs in the region and position Hanwha to support follow-on U.S. Army contracts,” Hanwha Defense USA Chief Operating Officer Mike Smith said in a news release.
Army officials said negotiations will conclude in the coming months. Hanwha Defense USA is a subsidiary of South Korea based Hanwha Aerospace.