The U.S. Department of the Army awarded a lease contact to Hanwha Defense USA to build and operate a new munitions facility at the Pine Bluff Arsenal.

Hanwha will invest $1.3 billion in the operation and hire 200 skilled workers. The agreement is pending final lease negotiations. Hanwha is owned by the Hanwha Group, a South Korean-based conglomerate.

The effort, led by U.S. Sens. John Boozman, R-Ark., and Tom Cotton, R-Ark., is a major step in modernizing the U.S. munitions supply chain and enhancing wartime ammunition capacity.

“Pine Bluff Arsenal is a vital national security asset and this new chapter will build on its important contributions,” Boozman said. “Our congressional delegation has consistently worked to ensure its full utilization in support of U.S. warfighters. We are excited to welcome Hanwha Defense USA to Arkansas and are confident our skilled workforce is prepared to help supply the critical materials needed for munitions that protect our military personnel, allies and interests.”

Under the contract, Hanwha will manufacture ingredients for explosives and propellants, a critical step in strengthening the nation’s defense organic industrial base, according to a press release.

“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 Assistant Secretary of the Army for Acquisition, Logistics and Technology Brent Ingraham.

The investment is expected to directly support Army readiness and modernization priorities.

“I’m proud to have worked with Secretary Hegseth and our entire delegation to secure this important investment which will mean more jobs in Pine Bluff and more tools for our men and women in uniform,” said Cotton. “This is a great development for the economic future of central Arkansas and the future of our nation’s defense.”

U.S. Rep. Bruce Westerman, R-Hot Springs, whose district includes Pine Bluff, said the restart of munitions manufacturing would “create greater opportunities for the Pine Bluff community but also bolster our national defense capabilities.”