US Ballistic Laboratories to Open Romanian Shell Factory
The firm will produce 155-millimeter shells in Romania to help meet the U.S. Department of Defense production goal.
Updated on Oct. 21, 2026 in Manufacturing
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US Ballistic Laboratories will open a new manufacturing facility in Bumbesti-Jiu, Romania, to produce 155-millimeter artillery shells. This expansion, backed by a $25 million deal finalized in September 2026, aims to help meet the U.S. Department of Defense's monthly production goal of 100,000 rounds.
Why it matters
The investment marks a significant effort to scale munitions production to address high global demand driven by conflicts in Ukraine and Iran. By leveraging the existing infrastructure of the Sadu Mechanical Plant, the company aims to establish a strategic European manufacturing foothold.
The $25 million deal covers the repurposing of 98 buildings at the Sadu Mechanical Plant and the hiring of 300 employees. This facility will support the U.S. Department of Defense's monthly target of 100,000 artillery shells, far exceeding the scale of the company's existing 40-person operation in Cody.
The players
US Ballistic Laboratories
An ammunition manufacturer currently operating a facility in Cody, Wyoming.
Sadu Mechanical Plant
A ROMARM-affiliated industrial site in Bumbesti-Jiu containing 98 buildings.
U.S. Department of Defense
The federal agency responsible for national security and defense procurement goals.
The details
US Ballistic Laboratories is collaborating with the ROMARM-affiliated Sadu Mechanical Plant to convert the site into an active munitions production line. By utilizing an established industrial footprint, the company aims to rapidly scale output of 155-millimeter high-explosive shells. The move represents a shift from domestic production to a decentralized model to stabilize supply chains in response to consistent international demand.
Timeline
2025: US Ballistic Laboratories announced plans for its Cody site.
Early 2026: Production fell below the 100,000-round target.
September 2026: Romania announced a $25 million deal with the company.
Market Landscape
This facility expansion follows a pattern of increasing reliance on international sites to meet the U.S. Department of Defense 100,000-round monthly production goal. The move mirrors industry-wide efforts to bridge the supply gap created by sustained global ammunition requirements.
Operators in the defense and industrial sectors should monitor how this expansion influences regional labor demand and raw material procurement in Europe. The scale-up serves as a signal to watch for further shifts in production geography as companies attempt to meet defense production quotas.
The takeaway
The move highlights the industry trend of repurposing existing industrial assets to meet urgent national security mandates. Companies should track the capacity utilization rates at the Bumbesti-Jiu site to gauge whether this model effectively narrows the gap between current production and federal targets.
Further reading
For additional context on how sector production shifts impact supply chains, see our coverage of Manufacturing.
Source note: This article includes information reported by Cowboy State Daily.
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