Fairbanks Morse Defense Breaks Ground on $60 Million Propulsion Center in Pascagoula, Mississippi

Fairbanks Morse Defense (FMD) broke ground on October 20, 2026 on a third Center of Excellence (CoE3) at its Bird-Johnson Propeller Company facility in Pascagoula, Mississippi. The center will effectively double the site’s capacity to produce complex naval propulsion systems.

$60 million with Navy and AUKUS funding

The $60 million project includes a $27 million U.S. Navy investment, $22 million of which comes from Australia’s initial contribution to the U.S. Submarine Industrial Base under AUKUS Pillar I. CoE3 adds 38,000 square feet of manufacturing space and two five-axis CNC machines that can handle parts weighing up to 100 metric tons, bringing the site’s total to four. It also includes a dedicated bay for a future 3D sand printer.

Workforce to grow 25%

The upgrade will grow the Pascagoula workforce by 25%, to a total of 100 skilled craftspeople. The center will support the Virginia-class submarine program and next-generation surface combatants, as well as FMD training and apprenticeship programs.

Dan Rediger, FMD President of Power and Propulsion said:

“The timelines to deliver specialized propulsion systems for the Virginia-class submarine program and next-generation surface combatants are accelerating. We are proud to answer the call by expanding our ability to support vital U.S. and allied national security programs.”