NewMarket Corporation announced today that its Board of Directors has approved a significant capital investment of up to $100 million for its subsidiary, American Pacific Corporation (AMPAC). This strategic move will fund a substantial expansion of AMPAC’s ammonium perchlorate production capabilities, directly addressing the escalating demand within the solid rocket motor industry.

The approved investment will enable AMPAC to construct a new production line at its facility. This expansion is projected to increase AMPAC’s production capacity by more than 50%, a considerable boost aimed at satisfying the growing needs of critical sectors.

According to the announcement, this increased capacity will be instrumental in meeting the domestic demand stemming from both U.S. military and burgeoning space launch programs. Furthermore, the expansion will allow AMPAC to reliably serve the requirements of U.S. allies in these strategically important domains, bolstering international partnerships and security efforts. The project is currently on track for completion during the year 2026.

Thomas E. Gottwald, the Chairman and CEO of NewMarket Corporation, expressed his enthusiasm for this significant investment. “We are excited about the opportunity to continue to invest in AMPAC,” he stated. “We view AMPAC as a strategic, national asset with a mission-critical role in global safety, security, and space programs.”

Gottwald further emphasized the multifaceted benefits of this expansion, highlighting its role in ensuring capacity to meet the evolving needs of AMPAC’s clientele. He also pointed out that the new production line will introduce valuable redundancy and enhanced security of supply within AMPAC’s existing production framework. This strategic investment, according to Gottwald, underscores NewMarket’s “long-term commitment to the success of AMPAC and its stakeholders.”

Ammonium perchlorate (AP) is typically made by reacting perchloric acid with ammonia. Ammonium perchlorate is a crucial oxidizer utilized in solid rocket propellants, making it an indispensable component for a wide range of applications, including missile systems, space launch vehicles, and other defense-related technologies. AMPAC has long been recognized as a key player in the production of this vital material, and this expansion will solidify its position as a leading supplier in the market.

The decision by NewMarket Corporation to invest such a substantial sum reflects the anticipated sustained growth in both the defense and space exploration sectors. The increasing demand for solid rocket motors, driven by geopolitical factors and the burgeoning commercial space industry, necessitates a corresponding increase in the production of essential materials like ammonium perchlorate.

This investment not only addresses immediate capacity concerns but also positions AMPAC for future growth and strengthens the overall supply chain for critical national security and space programs.