Defense Department Takes Equity Stake in Key Munitions Supplier
The Pentagon has announced a $1 billion investment in L3Harris’s solid rocket motors business, which the company plans to spin off as a separate entity later this year. The agreement allows the Defense Department to take a direct ownership stake in the business, with the goal of increasing production capacity and modernizing facilities. The move is part of the Pentagon’s direct-to-supplier initiative, aimed at addressing supply chain challenges in the munitions industry. As reported by Breaking Defense, the investment is seen as a key step in enhancing the US defense industrial base.