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BUSINESS
'1,000 acres of purpose:' Project Ranger officially breaks ground
Speakers focus on economic, national security impact of Sandoval County facility
Published
SANDOVAL COUNTY — It was a full house — or rather, a full tent — Wednesday at the Project Ranger site as Castelion Corporation officially broke ground on the hypersonic solid rocket motor facility coming to Sandoval County.
"Today is all about, I think, two things," said Andrew Kreitz, Castelion co-founder and CFO. "One is for members of the community who have not been following it as closely. We want to help them understand what we're doing here, why it's so important to national security ... and to let everyone know that we're moving quickly.
"And then also, to be honest, it's a huge thank you to all of our partners in the state and inside the community," he added. "We've been able to move really quickly here. We've been able to make a lot of progress that's critical to our customers in the War Department, and we could not have done this without very hard work from the state, city and county."
The site, which went through a selection process that started with an almost nationwide search, was officially selected by Castelion in November after announcing in August that it was a finalist. Kreitz has said in past visits to Rio Rancho that the facility will be the company's main production campus.
"What we're really excited about is we want this to be a nexus for aerospace manufacturing," he said, noting that Castelion is looking to leverage local suppliers as well as the outlook that new suppliers will be setting up.
"Once you have the supply chain here, that's going to draw more names from aerospace and from defense in the area," he said. "So our hope is, over time, this becomes one of the hubs in the country for aerospace and defense manufacturing."
That aim had New Mexico Economic Director Rob Black comment about the future workforce.
"The next generation, the kids that are coming up now, that are at Rio Rancho High School, that are at Cleveland, high schools and colleges all across New Mexico are going to get to build rockets. How cool is that?" he said. "This will not only build our national defense, but it will change generations of New Mexicans for the better."
He expanded on those comments after the ceremony, saying, "I'm so excited, on a personal level, the jobs it's going to create, opportunities it's going to create for our kids, because for so long, New Mexico's number-one export has been our kids. These types of jabs will help ground them here and keep them here, building their families, so I think it's transformative."
"Now imagine with this, 300 jobs turns into 600 jobs turns into 6,000 jobs, creates an entire ecosystem where we do the intelligent manufacturing, high-scale work and deliver that in other parts, connecting the defense and laboratory industries statewide. We're unstoppable," said Gov. Michelle Lujan Grisham. "We want to be part of that story — that we can create opportunities."
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That job commitment, presented by Castelion in prior presentations and reiterated Wednesday, is 300 full-time jobs — with average salaries of about $100,000 — in the first five years.
"We're already committing $220 million right here in Rio Rancho to build advanced manufacturing infrastructure and equipment," Kreitz said. "Moreover, we anticipate creating at least 300 high-skilled, high-paying jobs. These are jobs that people can build a life around in New Mexico."
Castelion CEO and co-cofounder Bryon Hargis echoed those numbers.
"Castelion has already committed $220 million to build out this site. I want to be clear here: That figure represents commitments to date, not a ceiling. The pace of demand we're seeing, growing interest from our customers, is accelerating faster than originally anticipated," he said. "This project is expected to create at least 300 highly skilled, high-paying jobs and generate more than $650 million in the next decade. However, I believe we will quickly exceed those figures."
Sandoval County Manager Wayne Johnson was thrilled to hear those numbers, saying the industrial revenue bonds passed in the fall was for $125 million.
"They're committed to invest $100 million more than they're committed to. I do believe that they're going to to create more jobs than they're required to, and so it's just a win for the entire Metro area and the state of New Mexico," he said. "This is exactly the type of economic development that we want to do. There's so many benefits to a company like this, that creates economic-based jobs where you desperately need them."
"It's going to be huge for the county and the state and the city of Rio Rancho," said state Sen. Jay Block, noting the high-salary jobs. "We're going to get some infrastructure out here as well, which is going to help attract other companies to come out here."
"I know this presents a lot of opportunity for New Mexico. It presents a lot of opportunity for Sandoval County and Rio Rancho. There's going to be a lot of ancillary businesses that will come in to support this," Rio Rancho Mayor Gregg Hull said. " I also see this being strong for the businesses that are in Rio Rancho, when you think about the employees that will shop in Rio Rancho, eat at the restaurants in Rio Rancho, and they will just be a part of the community and ... add to that local economy."
However, the jobs and economic benefits weren't the only topics of conversation on the day. National defense capability was also stressed by several of the speakers.
"Today marks more than the start of construction. It marks a commitment, a commitment to build deterrence at scale and to deliver capabilities that keep our country safe for generations," Hargis said. "Our guiding principle is 'peace through deterrence.' Our objective is clear: To ensure our adversaries think twice before they ever consider conflict.
"Our company wasn't built by chance. It was built deliberately around the belief that manufacturing isn't just an economic function but a national responsibility," he added. "America faces a real and growing gap in long-range strike manufacturing capacity. That vulnerability is a national security risk that we cannot afford. Project Ranger is designed to close that gap."
Military representatives present at the ceremony also spoke to Project Ranger's impact on national security.
"This effort has been reinforced by the United States Congress, where bipartisan leadership has leaned forward with acquisition and contract reforms that recognize speed, scale and industrial capability as national security imperatives," said Paul McGinty, director of Naval Air Systems Command Rapid Capabilities Cell. "This is not incremental reform. This is decisive execution. This facility is not a prototype. It is an industrial power for the modern arsenal of freedom."
"Today is more than just a groundbreaking ceremony. It is a statement, a statement about urgency, about scale and about how the United States Army intends to deter conflict and, if necessary, win it," said Army Lt. Gen. Frank Lozano, director of hypersonics, directed energy, space and rapid acquisition, who called Project Ranger "1,000 acres of purpose."
"We are not in a position to wait for perfect. We need operational capability, and we need it soon," he added. "What we break ground on today is not just for concrete and steel. It is the difference between capability and credible deterrence. In the strategic environment we face, that difference is everything. ... We do not have time. The world is not waiting on our timeline.
"Our nation today sends a clear message to our allies: The United States is serious about sustained capability, not just demonstrations. To our adversaries: We are not standing still. We are not constrained by outdated processes. We are not dependent on fragile production. We are building capacity, we are building resilience, and we are building the ability to respond at scale," Lozano said.
"I would say there's a very strong customer interest, and I come back to hypersonics are a critical capability," Kreitz said. "They've been labeled critical technology for national security. There's a reason that the administration — and again, it's bipartisan — the Congress as well, is working so hard to close the gap."
"We got a lot of work to do to catch up with our competitors of Russia and China, and this company here is going to be producing thousands of hypersonics so we can deter our enemies every single day," Block, an Air Force veteran, said. "I'm very familiar with how far behind the country is right now in the hypersonic race. These guys are an incredible company. They've got amazing leadership and amazing technical talent, and they are going to make a huge impact on our national security in a positive way."
"Today, we break ground, not as ceremony, but with confidence, confidence that we are building more than a facility, confidence that we are building momentum and confidence that when we accept calculated risks and move at the speed of relevance, we are unstoppable," Lozano said. "America will build. America will deter. America will win, and today, right here in Sandoval County, we are all making that happen."
