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New Mexico considered for major hypersonic rocket motor production facility

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Rob Black, Cabinet Secretary-Designate | New Mexico Economic Development Department

A defense technology company is considering Sandoval County, New Mexico, as a potential site for a new rocket motor production facility focused on hypersonic systems. Castelion Corporation, based in Torrance, California, is evaluating the location alongside other out-of-state options.

If the project moves forward in New Mexico, it could lead to hundreds of high-paying jobs and reinforce the state's involvement in national security efforts. Initial estimates suggest that Phase One of the facility could generate more than $659 million in economic output over ten years. The investment for this phase would exceed $101 million and result in up to 300 new positions with average salaries above $100,000 per year.

“New Mexico has long been a cornerstone of American innovation and defense; winning this project would continue that tradition,” said Rob Black, Cabinet Secretary for the New Mexico Economic Development Department. “If our state is ultimately selected, this would mean high-tech jobs, significant investment, and the kind of advanced manufacturing that keeps New Mexico on the map for national security and economic opportunity alike.”

Castelion’s goal is to produce hypersonic systems at scale to support U.S. defense capabilities and those of its allies.

The candidacy process has involved cooperation between local governments and organizations such as Sandoval County, Albuquerque Regional Economic Alliance (AREA), Sandoval Economic Alliance (SEA), along with state and federal officials.

“This kind of project reflects the type of industrial development that strengthens our local economy while contributing to national priorities,” said Sandoval County Manager Wayne Johnson. “It’s the result of months of focused work and cooperation across agencies.”

“Coordinated efforts like this are a powerful example of how our region and state can win when the public and private sectors work together with focus and determination,” said Chad Matheson, Interim President & CEO of the Albuquerque Regional Economic Alliance. “This investment could deliver high-quality jobs, significant capital investment, and strengthen our position as a premier destination for defense technology and research and development investment.”

Reviews by Sandia National Laboratories and Los Alamos National Laboratory found that plans for safety at the proposed site meet required federal standards. The facility would include environmental monitoring programs as well as continuous on-site security.

Should Castelion select New Mexico for its operations, projections indicate employment at the facility could surpass 1,000 people by 2035 with total capital investments potentially exceeding $150 million.

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