The company signed a land lease to build a facility near Charleston that will boost its capability to support U.S. Navy priority programs and spur economic growth in the region.

ARLINGTON, Va.—Leonardo DRS, Inc. recently signed a ground lease in the Charleston, South Carolina metropolitan area to develop a state-of-the-art manufacturing facility that will enable the company to grow its naval propulsion capability and streamline its support of priority U.S. Navy programs, the company said in a release.

When complete, the facility will provide more than 140,000 square feet of purpose-built advanced manufacturing, assembly, and testing space, representing an approximate net investment of $120 million by Leonardo DRS. The new capabilities made possible by this investment are expected to 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, in a statement. “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.”

The planned 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, Wisconsin, facility; electric motors designed and manufactured in the DRS facility in Fitchburg, Massachusetts.; control systems designed and manufactured in the DRS facility in Danbury, Connecticut; and cooling equipment designed and manufactured in the DRS facility in High Ridge, Missouri. 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, the release said.

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

The facility is also expected to 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, the company said.

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.

Leonardo DRS, headquartered in Arlington, describes itself as “an innovative and agile provider of advanced defense technology to U.S. national security customers and allies around the world.” The company said it specializes in the design, development, and manufacture of advanced sensing, network computing, force protection, electric power and propulsion, and other leading mission-critical technologies.