Shattered $533M shell production for Ukraine in the US

INDUSTRY 14.08.2026 / author:
General Dynamics artillery factory; Mesquite Texas; 155 mm artillery shells

The American corporation General Dynamics received 533 million dollars from the US Army to build a plant for producing 155mm artillery shells for Ukraine, yet the facility has not produced a single usable ammunition due to technical issues and a lack of proper oversight. This was reported by Rozsliduvannia ProPublica citing Department of Defense, according to the portal PromPolitInform.

The facility, located near Dallas in the city of Mesquite, faced constant accidents on the production line. Specifically, the newest robotic manipulators regularly caught fire due to oil spills, and complex Turkish equipment deformed or destroyed workpieces instead of forming them according to set standards.

Production lines halted after numerous missed deadlines

The US Army decided to halt operations on two out of three production lines back in August 2025, as the contractor missed eight project delivery deadlines. A Department of Defense Inspector General report published in July confirmed the complete absence of usable shells at the output.

The company continued to receive billion-dollar contracts despite work disruption

Despite the inefficient spending of public funds, the corporation faced no public accountability and did not return the received funding. Moreover, the General Dynamics division subsequently secured new government contracts totaling 2.5 billion dollars.

Reasons for failure and official reactions

The investigation revealed that Congress waived standard public procurement safeguards to expedite military aid to Ukraine. The military department entered into a direct agreement without thoroughly vetting the Turkish subcontractor Repkon and the reliability of the proposed metal flow-forming technology.

Officials noted they would compensate for the losses through discounts on other orders or resource reallocation. The company itself called the investigation incorrect and stated that it complied with all contractual requirements.

Illustrative photo: U.S. Army 10AAMDC by 2nd Lt. Erin McCarthy / Public domain

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