Aerojet Rocketdyne has unveiled a plan to build a new facility for the production of its AR1 rocket engine at its existing site in Huntsville, Alabama, US.

To be developed as part of the company’s second phase of its competitive improvement programme (CIP), the proposed facility will also focus on additive manufacturing, composites production, and research and development.

The new facility is also expected to centralise and expand Aerojet Rocketdyne’s existing presence in Huntsville.

Scheduled to be operational by mid-2019, the facility will bring around 800 jobs to the region.

“We intend to build on this success by expanding our CIP-related consolidation efforts so we can deliver the value our customers demand and position our company for further growth.”

Aerojet Rocketdyne is also planning to consolidate and optimise its other US-based facilities in Sacramento and Vernon, California, and Gainesville, Virginia, over the next two years.

Aerojet Rocketdyne CEO and president Eileen Drake said: “We are two years into the first phase of our CIP affordability drive and the consolidation progress, and overhead cost reductions achieved to date have exceeded our expectations.

“We intend to build on this success by expanding our CIP-related consolidation efforts so we can deliver the value our customers demand and position our company for further growth.”

“This expanded CIP effort is expected to result in $230m in annual savings once complete, inclusive of the $145m from the first phase of CIP. Given the dynamic nature of this industry, strategic business decisions such as these, while difficult, are critical to establishing a solid course for our future.”

The company further noted that it would move the Sacramento site’s current defence-related programme management, engineering and related support positions to the Huntsville facilities by the end of next year.

Most of the remaining programmes and support positions at the Sacramento site will be relocated to Aerojet Rocketdyne’s headquarters at Los Angeles, California, US.  

The company will complete its manufacturing commitments in Sacramento by the end of 2019.

The entire process is anticipated to see the relocation or elimination of around 1,100 of the existing 1,400 positions in Sacramento.

Aerojet Rocketdyne is also planning to close its facility in Gainesville, Virginia, in the third quarter of next year, affecting around 170 positions.