US misses 155mm shell target as $469m Texas plant fails
A $469 million US Army factory meant to supply desperately needed 155mm artillery shells has produced nothing usable, leaving Washington far short of its production targets and increasing pressure on European arms manufacturers to sustain Ukraine's defence.
The Pentagon's watchdog revealed the US Army is producing just 36,000 155-mm shells per month as of March 2026. This falls drastically short of a targeted 100,000 rounds per month by October 2025.
The primary bottleneck is a $469 million modular metal parts factory in Mesquite, Texas. Opened in 2024 and operated by General Dynamics Ordnance and Tactical Systems, the facility was supposed to use high levels of automation. Instead, it has failed to produce any metal projectile parts that meet contract specifications.
For European governments, this industrial failure has direct security implications. The US push to expand 155-mm manufacturing was triggered by voracious expenditure in Ukraine that depleted American stockpiles. Continued delays in US output increase the pressure on European arms manufacturers to fill the supply gap.
The Department of Defense Inspector General blamed the Army’s Capability Program Executive Ammunition & Energetics for accepting unproven manufacturing risks. To save time, the Army allowed the contractor to adapt old production lines originally designed for the 1958-era M107 shell. These were meant to produce the newer M795 variant, which requires different specifications.
The Texas failure forced the Army to rely on older plants in Scranton and Wilkes-Barre, Pennsylvania, and Ingersoll, Canada. The Scranton facility already faces separate issues with maintenance and responsiveness. Some officials warned the Mesquite contract should have been open to competitive bidding rather than awarded directly.
Despite the setback, the Army has tripled output from 14,000 to 36,000 rounds per month. It now hopes to reach 140,000 rounds monthly by December 2027 by modernizing an Iowa plant and opening new facilities in Kansas and Arkansas.
The Inspector General has recommended the Army review the Mesquite contract to determine if it was appropriately issued. A key focus will be whether the Pentagon can recoup any of the $469 million investment from the contractor.
