Kongsberg Defence & Aerospace to invest $191 million to establish U.S. facility near Williamsburg

Governor Glenn Youngkin on Sept. 17 announced that Kongsberg Defence & Aerospace Inc., a global provider of defense and aerospace systems, will invest $71 million to establish a 150,000-square-foot facility in James City County near Williamsburg. The company will invest an additional $30 million in other costs, including engineering and software. Virginia successfully competed with two other states for the project, which will create more than 180 new jobs, according to the governor.

“Following our productive meetings in Europe, Kongsberg’s decision to establish its first U.S. defense assembly facility in Virginia reaffirms our status as America’s top state for business,” said Governor Glenn Youngkin. “Not only will this investment create more than 180 new jobs, but it will also showcase our strategic location to attract global leaders in defense industries. We are proud to welcome them to the Commonwealth and look forward to supporting their growth.”

“On our recent trade mission to Europe, we met with leaders of Kongsberg,” said Secretary of Commerce and Trade Caren Merrick. “The exciting announcement will provide excellent opportunities for Virginia’s talented workforce, and we are excited about the impact this will have on the Commonwealth’s high-tech defense manufacturing economy. Kongsberg’s investment in a 150,000-square-foot facility in James City County is a perfect example of why Virginia is an ideal destination for businesses around the world.”

“The decision to choose James City County, Virginia, was heavily influenced by the continuous availability of well-trained and highly skilled workers coming from the various military installations in the region,” said president and general manager of Kongsberg Defence and Aerospace, Inc., the U.S. subsidiary of KONGSBERG Heather Armentrout. “That combined with the livability of the area and the tremendous support offered by the Virginia Economic Development Partnership, the Hampton Roads Alliance and the James City County Economic Development Agency, made it clear that this is where we need to be.” 

“I want to congratulate and thank Kongsberg Defence & Aerospace for choosing James City County,” said chair of the James City County Board of Supervisors Ruth Larson. “Our skilled workforce, industry-leading manufacturing companies, and community assets combine to make James City County a world-class destination for businesses and residents alike. I am pleased that our economic development staff, the Hampton Roads Alliance, and VEDP were able to collaborate to attract this investment and 180+ high-paying jobs to James City County.” 

“Kongsberg’s decision to establish its facility in James City County is a significant win for our region,” said Senator Danny Diggs. “This project not only brings new jobs, but also strengthens Virginia’s top tier position in the defense industry.”

“I would like to thank Governor Glenn Youngkin and all of our partners in Virginia who are bringing high-quality jobs here to the Peninsula,” said Delegate Chad Green. “Our business-friendly environment and skilled workforce make us the envy of the nation and I am pleased to see the investment by Kongsberg Defence & Aerospace in our community. This investment will keep James City County and our region competitive on a state, national, and global scale.”

“When it comes to the business of defense, Hampton Roads is America’s military metro,” said Hampton Roads Alliance President & CEO Doug Smith. “With over one-third of our local economy supporting the defense sector and 18 military installations located in the region, Hampton Roads is one of the most significant defense ecosystems in the world.”

Founded in 1814, Kongsberg Defence & Aerospace is the defense and aerospace division of the KONGSBERG Group, an international technology company that supplies high-technology systems and solutions to customers in the merchant marine, defense, aerospace, offshore industries, and renewable energy sectors.

The new facility in James City County will provide additional production capacity, sustainment and in-country tech refresh capabilities for two state-of-the-art cruise missiles being procured by the Department of Defense.

The US Navy is procuring Naval Strike Missiles for littoral combat ships and the new Constellation-class frigate. The Marine Corps is using the same missile as a key sea denial element in their Future Force Design plans. The US Air Force is procuring Joint Strike Missiles for their F-35 fighters as it is the only operational strike weapon capable of internal carriage, which preserves their stealth signature during missions. This is KONGSBERG’s first production facility in the U.S. and it will expand domestic suppliers, building capacity and redundancy for these critical capabilities worldwide.

The Virginia Economic Development Partnership worked with James City County and the Hampton Roads Economic Development Alliance to secure the project for Virginia.

Governor Youngkin approved a $1.5 million grant from the Commonwealth’s Opportunity Fund to assist James City County with the project. The Governor also approved a performance-based grant of $750,000 from the Virginia Investment Performance Grant, an incentive that encourages continued capital investment by existing Virginia companies. 

Support for Kongsberg Defence & Aerospace Inc.’s job creation will be provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Governor’s administration and the Virginia General Assembly. Launched in 2019, the program accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customized to a company’s unique products, processes, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation.