Alabama Governor Kay Ivey on Wednesday awarded a $1 million grant to fund construction of a water line to support planned expansions at Lockheed Martin’s Troy plant.
According to the Alabama Department of Economic and Community Affairs, the expansion is expected to create 300 jobs.
Lockheed Martin plans to invest $35 million to $50 million in operational expansions at its Troy location, including construction of at least one new facility. The aerospace and defense company plans to increase its annual production of Terminal High Altitude Area Defense missile interceptors, known as THAAD, from 96 to 400 over the next seven years.
“This is a significant development for Troy and Pike County that will bring many good jobs and enhance economic opportunities in the area,” Ivey said. “I am pleased to award funds to this project, which will benefit area residents and support national defense objectives.”
According to ADECA, the project will also support the Rex Lumber and Universal Precast industrial facilities in Troy and is expected to improve service to roughly 900 nearby residents. Local leaders said the infrastructure upgrade will address current water system limitations and facilitate future industrial growth in the Troy area.
ADECA is administering the Community Development Block Grant with funds made available by the U.S. Department of Housing and Urban Development.
“This development will improve regional manufacturing capacity and generate new economic opportunities for area residents,” ADECA Director Kenneth Boswell said. “ADECA is pleased to partner with Gov. Ivey and Pike County in support of this substantial project.”
Ivey has notified Pike County Commission Chairman Chad Copeland of the grant’s approval. The Pike County Commission will contribute $755,000 in matching local funds.
The grant award comes after Lockheed Martin broke ground in May on an 87,000-square-foot munitions production center at its Troy location as part of the company’s plan to more than quadruple THAAD missile production by 2031.
The United States reportedly used roughly a quarter of its THAAD missile supply during Israel’s 12-day conflict with Iran in 2025. According to the Pentagon, each THAAD missile cost $12.7 million in fiscal year 2025.
