A $1 million state grant will help fund water-line construction supporting an expansion of Lockheed Martin's manufacturing operations in Troy, Ala., a project expected to create 300 jobs and increase production capacity at the aerospace and defense company's Pike County facility.
Gov. Kay Ivey awarded the grant Oct. 14, 2026, to support infrastructure improvements needed for the planned expansion, according to the Alabama Department of Economic and Community Affairs (ADECA).
Lockheed Martin plans to invest between $35 million and $50 million in an operational expansion at the Troy plant that will include at least one new facility. The company plans to increase annual production of Terminal High Altitude Area Defense (THAAD) missile interceptors from 96 to 400 over the next seven years.
The water-line project is an important part of the area's supporting infrastructure. In addition to serving Lockheed Martin, the improvements will support the Rex Lumber and Universal Precast industrial facilities in Troy. The upgraded system also is expected to improve water service for approximately 900 nearby residents.
Local officials said the project will address existing limitations in the area's water system while providing additional capacity to accommodate industrial growth. The Pike County Commission will contribute $755,000 in local matching funds toward the project.
ADECA is administering the Community Development Block Grant through funding provided by the U.S. Department of Housing and Urban Development.
The water-line grant comes as Lockheed Martin advances a separate major manufacturing expansion at its Troy operation.
In May 2026, the company broke ground on Building 47, a new Munitions Production Center that will add 87,000 sq. ft. of production space. The facility is designed to support THAAD interceptor manufacturing and future work involving the Next Generation Interceptor (NGI).
The company's Troy operation is a large industrial campus covering approximately 3,863 acres. It includes 54 buildings, six of which are major production factories. The existing facilities support manufacturing, final assembly, testing and storage operations for several missile programs.
The new facility is part of Lockheed Martin's broader investment of more than $9 billion through 2030 to expand or upgrade more than 20 facilities across the United States. The company also is investing in manufacturing equipment, tooling, supplier capacity and workforce development to support increased production.
At the May groundbreaking, Lockheed Martin officials said construction and equipment investments were moving forward to support the production increases. The company also discussed using digital project-management systems and predictive scheduling tools to monitor construction progress and identify potential supply-related delays.
The water-line improvements will provide additional utility capacity for the growing industrial area, supporting both the company's manufacturing plans and other local businesses. ⣠CEG
