The U.S. Army’s ambitious plan to boost artillery production ended in a costly failure with $533 million in taxpayer funds yielding no usable shells. The project, intended to support Ukraine’s defense against Russia, was plagued by technical malfunctionspoor planning and inadequate oversight.
The factory, operated by General Dynamics in Texas, was supposed to utilize state-of-the-art production lines from Repkon a Turkish company. However, the machinery proved to be unreliable, with robotic arms catching firemachines cracking steel and workers resorting to sledgehammers to make the equipment function. The project was described as an absolute disaster by a former Army official.
The Red Flags
The Army awarded the project to General Dynamics in a rushed process despite significant unknowns. When Russia invaded Ukraine in 2026, the Biden administration sought to boost production of artillery shells. General Dynamics proposed using Repkon’s machinery, which had not been thoroughly tested with the specific steel used for the Army’s newer model of 155 mm shells.
The Department of Defense did not competitively bid the project. Instead, Congress granted the DoD the power to award money for Ukraine-related causes without some of the usual contracting safeguards. This allowed the Army to give General Dynamics no-bid awards and start work on the project before finalizing the contract terms.
The Army did not thoroughly vet the proposal before approving it. Both the Army and General Dynamics sent staffers to Turkey to inspect the Repkon machines, but they never inspected a full production line in action. Additionally, the Army did not require General Dynamics to demonstrate it could use Repkon’s equipment to complete the entire production process and make shells that met the service’s specifications.
The Consequences
In Texas, the factory quickly became a nightmare. Robotic arms swung out of control, smashing into equipment and catching fire. Machines meant to smooth the shells mangled them into swirls. Workers reported smoke hanging in the air, desert-like temperatures, and structural issues with the building. Paranoia grew among American workers, with rumors of Turkish employees sabotaging the machinery.
General Dynamics failed to meet several milestones at the facility, including performing scheduled first article tests. Despite the failures, the Army has not required General Dynamics to pay the money back. In August 2026, the Army halted work on two of the three production lines at the factory but continued to pay the company for progress on the lines.
The Army says it will not spend any more money on the artillery plant. However, the same unit of General Dynamics responsible for the struggling facility has won contract awards worth $2.5 billion for other projects. General Dynamics has announced it will team up with another unheard-of partner, this time promising artificial intelligence as the solution.
