AeroVironment $30M Expansion for Defense Plant

AeroVironment, Inc. announced plans to spend $30 million to expand a manufacturing site it runs in Albuquerque, New Mexico. The expansion is expected to create 450 jobs on the site, which produces directed energy laser systems for the Pentagon.

The site, part of AeroVironment’s Space & Directed Energy group, produces defense, aerospace and commercial space products including laser communications devices and anti-drone systems, as well providing support for U.S. military customer prototyping and testing.

According to a company statement and state officials, the project is supported by a number of state and local incentives, including $5 million from the state of New Mexico and $1 million through the City of Albuquerque’s Local Economic Development Act, contingent on AeroVironment meeting certain undisclosed hiring goals. A company statement estimated the vertically integrated site will generate $670 million for the economy in 10 years.

In a statement, AeroVironment CEO Wahid Nawabi said the expansion would increase U.S. domestic materiel manufacturing.

“The growth we’re driving in Albuquerque goes beyond our own business,” Wahid said. “It’s about strengthening the domestic defense industrial base, creating high-quality American jobs, and partnering with New Mexico to continue to develop a durable innovation and manufacturing hub that can deliver when it matters most.”

Mayor of Albuquerque Tim Keller noted the existing defense sector of his city and the anticipated economic affect the expansion would have.

“Albuquerque is where defense innovation becomes advanced manufacturing,” Keller said. “With LEDA support, AV Defense is expanding here, bringing hundreds of good-paying jobs and strengthening our local economy.”