American Pacific Corporation (AMPAC), a key supplier of materials for solid rocket propulsion, has announced a major expansion at its Cedar City, Utah facility. Backed by parent company NewMarket Corporation (NYSE: NEU), the initiative includes a capital investment of up to $100 million aimed at increasing AMPAC’s ammonium perchlorate production capacity by over 50%.
The expansion will involve the construction of a new production line and is scheduled for completion by 2026. The move comes amid a surge in demand from U.S. and allied defense initiatives, as well as the growing needs of civil space launch programs.
Thomas E. Gottwald, Chairman and CEO of NewMarket Corporation, emphasized the strategic significance of the investment, stating, “We are proud to continue investing in AMPAC, a strategic national asset with a mission-critical role in global safety, security, and space programs. This expansion allows us to respond to increased demand while strengthening supply chain security and product resilience.”
Kris Griffith, President of AMPAC, echoed the importance of the initiative: “As our customers ramp up solid rocket motor production to support national security and space exploration, AMPAC is investing to ensure reliable supply and technical excellence. This project reflects our dedication to maintaining domestic resiliency in these critical areas.”
AMPAC remains the leading North American producer of ammonium perchlorate, a key oxidizer used in solid rocket propellants for both defense and aerospace applications. The new capacity is expected to play a vital role in reinforcing the U.S. industrial base as it adapts to heightened demand and works to reduce reliance on foreign sources.
Founded in 1955, AMPAC has served as a cornerstone supplier for more than six decades, supporting a wide range of Department of Defense and NASA propulsion systems. In addition to its defense materials, the company also produces Halotron™ BrX, an environmentally responsible fire suppressant designed to replace high ozone-depleting halons.
NewMarket Corporation, AMPAC’s parent company, operates through subsidiaries including Afton Chemical and Ethyl Corporation, and focuses on chemical solutions that enhance fuel and lubricant performance across global industries.