Feb 28, 2024   SOURCE: BusinessWire

Leonardo DRS Signs Land Lease to Build State-of-the-Art Naval Propulsion Manufacturing and Test Facility Near Charleston, S.C.

Leonardo DRS, Inc. (NASDAQ: DRS) announced today that it has signed a ground lease in the Charleston, South Carolina metropolitan area to develop a state-of-the-art manufacturing facility, allowing the company to grow its naval propulsion capability and streamline its support of priority U.S. Navy programs.

When complete there will be over 140,000 square feet of purpose-built advanced manufacturing, assembly and testing space representing an approximate net investment of $120 million by DRS. The new capabilities made possible by this investment will play a key role in the continued expansion of propulsion system integration and testing for the company. Initial occupancy is targeted for 2026.

“We are proud to be building the next-generation electric propulsion system components for the new Columbia-class ballistic missile submarine,” said Leonardo DRS CEO, Bill Lynn. “This new facility in South Carolina expands our capability to support our U.S. Navy customers on this and other critical programs that enhance the nation’s submarine industrial base,” he added.

When completed, the facility will have the capability to manufacture, integrate and test large components for DRS’s advanced naval electric propulsion systems. The components include solid-state drives, designed and manufactured in the new DRS Menomonee Falls, WI. facility; electric motors designed and manufactured in the DRS facility in Fitchburg, MA.; control systems designed and manufactured in the DRS facility in Danbury, CT., and cooling equipment designed and manufactured in the DRS facility in High Ridge, MO. The South Carolina facility will have direct access to barge transportation on the local waterway and out to the open ocean for shipping these large assemblies to the company’s shipbuilding customers.

“This facility represents a significant milestone in our ongoing collaboration with the U.S. Navy. We expect the unique capabilities in this new facility to be a national asset capable of addressing the Navy’s current and future needs,” said Jon Miller, senior vice president and general manager of the Leonardo DRS Naval Power Systems business.

Additionally, the new facility will also play an important role in spurring economic growth in the region through building a network of regional business partners, universities and other organizations that will work closely with DRS.

Leonardo DRS partnered with a team across state and local governments, as well as regional economic organizations and the private sector to bring this project to the greater Charleston area.

About Leonardo DRS

Headquartered in Arlington, VA, Leonardo DRS, Inc. is an innovative and agile provider of advanced defense technology to U.S. national security customers and allies around the world. We specialize in the design, development and manufacture of advanced sensing, network computing, force protection, and electric power and propulsion, and other leading mission-critical technologies. Our innovative people are leading the way in developing disruptive technologies for autonomous, dynamic, interconnected, and multi-domain capabilities to defend against new and emerging threats. For more information and to learn more about our full range of capabilities, visit www.LeonardoDRS.com.

Forward-Looking Statements

This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.