Army Paid General Dynamics $533 Million for Artillery Plant That Never Produced a Single Shell
A new $533 million ammunition factory in Texas, intended to rapidly boost U.S. production of 155mm artillery shells, has failed to produce a single usable part in its first two years of operation. The failure, driven by a high-risk attempt to repurpose outdated machinery, has severely hindered the Pentagon's goals to replenish stockpiles depleted by the war in Ukraine.
There is a persistent assumption in Washington that the U.S. defense industrial base can seamlessly surge to wartime production simply by injecting enough capital into established prime contractors. The reality, exposed by a half-billion-dollar failure in Texas, is far more brittle.[1]
In May 2024, the Army and General Dynamics Ordnance and Tactical Systems opened a sprawling new ammunition facility in Mesquite, Texas. Funded by $533 million in emergency supplemental spending, the plant was designed to be the cornerstone of a national effort to replenish 155mm artillery stockpiles depleted by the war in Ukraine.[1][4]
The facility was contracted to forge 30,000 steel projectile bodies every month. This output was critical to the Pentagon's broader objective of ramping up U.S. artillery production from a pre-war baseline of 14,000 rounds a month to a massive 100,000 rounds by late 2025.[3][4]
Yet, more than two years after it opened, the Mesquite plant has not produced a single usable shell casing. A scathing Department of Defense Inspector General report, corroborated by a sweeping ProPublica investigation in August 2026, revealed that the facility's production lines remain completely paralyzed by catastrophic equipment failures.[1][2][4]
The root of the failure lies in a high-risk procurement gamble. Rather than purchasing modern manufacturing systems, General Dynamics and a Turkish subcontractor, Repkon, attempted to adapt outdated machinery salvaged from a discontinued production line. That older equipment was originally designed to forge the M107, a shorter-range shell made from different steel.[1][3]
When tasked with shaping the harder steel required for the modern M795 shell, the repurposed machinery violently rejected the process. Former workers described a chaotic factory floor where robotic arms regularly caught fire, 1,800-degree steel blocks were dropped from the air, and giant presses had to be beaten with sledgehammers to function.[1][2]
Instead of precisely stretching the steel into aerodynamic casings, the machines routinely cracked the metal beyond repair or mangled it into twisted shapes. The facility repeatedly failed its first article testing, a mandatory milestone to prove it could meet military specifications.[1][4]
Recognizing the insurmountable technical hurdles, the Army ordered a complete work stoppage on two of the plant's three production lines in August 2025. Despite blowing eight consecutive deadlines, the third line continued to operate into 2026 without ever yielding a battle-ready component.[1][4]
The financial fallout has drawn intense scrutiny from government watchdogs. Despite delivering zero usable parts, General Dynamics was never formally penalized. The company retained the $533 million, received an additional $26.3 million in progress payments in December 2025, and has since been awarded $2.5 billion in unrelated defense contracts.[1][2]
This localized failure has created a severe bottleneck in the broader U.S. munitions supply chain. Because the Texas plant was responsible solely for forging the hollow steel tubes, its failure means downstream Army facilities in Iowa and Arkansas have no casings to fill with explosives.[3]
Without the 30,000 shells per month from Mesquite, the U.S. Army is currently stuck producing roughly 36,000 rounds a month—falling 71% short of its production capacity goals. This shortfall directly impacts the Pentagon's ability to supply allied forces in Europe and maintain its own deterrence posture in the Middle East and the Indo-Pacific.[3][4]
The Mesquite debacle illustrates the systemic fragility of a consolidated defense industry. When a single point of failure in a hollow steel tube can derail a national security imperative, it forces a reckoning over how the military balances the urgent need for speed against the rigorous oversight required for unproven manufacturing gambles.[1][4]
Viewpoints in depth
Pentagon Watchdogs' view
Focuses on the lack of accountability and the waste of taxpayer funds on unproven equipment.
Government oversight bodies and investigative journalists emphasize that the Army bypassed standard procurement guardrails to award a massive no-bid contract. They argue that accepting a 'high-risk' proposal to use outdated Turkish machinery was a predictable disaster. The core grievance is the lack of consequences: despite delivering zero usable shells, the contractor retained the funds and continued to receive billions in new awards, highlighting a broken accountability mechanism in defense spending.
Defense Industry Advocates' view
Argues that wartime production surges inherently require high-risk gambles that sometimes fail.
Proponents of the defense industrial base point out that the U.S. was facing a critical munitions crisis in 2022 and 2023, requiring the Army to move at unprecedented speed. From this perspective, attempting to repurpose existing machinery was a necessary gamble to cut years off the standard factory-building timeline. While the Mesquite plant failed, advocates argue that a risk-averse procurement culture is exactly what caused the munitions shortage in the first place, and that occasional failures are the cost of trying to innovate rapidly.
National Security Analysts' view
Views the failure as a symptom of a fragile, overly consolidated defense supply chain.
Strategic analysts look past the financial waste to focus on the operational impact. They note that the entire U.S. artillery production goal was derailed not by complex electronics or explosives, but by the inability to forge a hollow steel tube. This underscores a dangerous fragility in the American defense industrial base, where a single point of failure in basic heavy manufacturing can compromise the Pentagon's ability to supply multiple global theaters simultaneously.
Key points
- The U.S. Army paid General Dynamics $533 million to build a Texas factory to produce 30,000 artillery shells per month.
- Two years after opening, the Mesquite facility has failed to produce a single usable 155mm shell casing.
- The failure stems from a high-risk attempt to repurpose outdated Turkish machinery to forge modern M795 shells.
- Factory conditions included robotic arms catching fire, dropped steel blocks, and machines cracking the metal casings.
What we don’t know
- Whether the Army will ultimately attempt to recoup the $533 million through legal action or future contract discounts.
- How the Pentagon plans to cover the 30,000-round-per-month shortfall created by the Mesquite plant's failure.
- If the remaining operational production line at the facility will ever be capable of producing battle-ready M795 casings.
How we got here
2022-2023
The Army issues expedited contracts to rapidly expand 155mm artillery production in response to the war in Ukraine.
May 2024
General Dynamics opens the $533 million Universal Artillery Projectile Lines facility in Mesquite, Texas.
August 2025
The Army orders a halt to two of the plant's three production lines after repeated equipment failures and missed deadlines.
December 2025
Despite the lack of usable output, the Army pays General Dynamics $26.3 million in progress payments.
July 2026
A Department of Defense Inspector General report reveals the plant has failed to produce a single usable shell casing in two years.
- Pentagon Watchdogs
- Focuses on the lack of accountability and the waste of taxpayer funds on unproven equipment.
- Defense Industry Advocates
- Argues that wartime production surges inherently require high-risk gambles that sometimes fail.
- National Security Analysts
- Views the failure as a symptom of a fragile, overly consolidated defense supply chain.
Perspectives this story doesn't cover
- Ukrainian military officials relying on the munitions
- Taxpayer advocacy groups
Sources
[1]ProPublicaPentagon WatchdogsFiasco in the Factory: Taxpayers Funded a $533 Million Artillery Plant That Made Nothing
Read on ProPublica →
[2]Government ExecutivePentagon WatchdogsThe Army gave General Dynamics $533M to build an artillery plant that produced nothing
Read on Government Executive →
[3]The War ZoneNational Security AnalystsNew $500M Artillery Shell Plant Failed To Produce Any 155mm Parts
Read on The War Zone →
[4]CBS NewsNational Security AnalystsDefense watchdog finds new 155mm artillery plant failed to produce parts in 2 Years Since It Was Built, Hindering Production Goals
Read on CBS News →
[5]Ground NewsNational Security AnalystsGeneral Dynamics Took $533 Million for an Artillery Plant That Made No Usable Shells
Read on Ground News →
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