# Fairbanks Morse starts $60 million naval propulsion expansion Australian AUKUS funding is part of the project, which the company says will effectively double naval propulsion manufacturing capacity at its Pascagoula facility. Published 2026-10-22 by TGOs. Canonical: https://tgos.io/news/2026/10/22/fairbanks-morse-starts-60-million-naval-propulsion-expansion/ Fairbanks Morse Defense broke ground Oct. 20 on a $60 million expansion at its Bird-Johnson Propeller Company facility in Pascagoula, Mississippi.[1] The company says the new Center of Excellence will effectively double the facility’s capacity to produce naval propulsion systems.[1] The project includes a $27 million U.S. Navy investment.[1] Of that amount, $22 million comes from Australia’s initial contribution to the U.S. Submarine Industrial Base under AUKUS Pillar I.[1] The center will complement existing foundry capacity with 38,000 square feet of manufacturing space.[1] It will house two new five-axis computer numerical control machines.[1] Equipped for parts weighing up to 100 metric tons, the new machines will bring the facility’s total to four.[1] The design also reserves a machine-ready expansion slot and a bay for a future 3D sand printer.[1] Fairbanks Morse expects the upgrade to increase the foundry’s workforce by 25%, to 100 craftspeople.[1] ## Why it matters Dan Rediger, Fairbanks Morse Defense’s president of power and propulsion, said delivery timelines for specialized propulsion systems for the Virginia-class submarine program and next-generation surface combatants are accelerating.[1] The new capacity is scheduled to come online by the first quarter of 2028.[1] Fairbanks Morse disclosed no output or delivery figures for the added capacity in the announcement.[1] ## Sources 1. Fairbanks Morse Defense release, Oct. 20, 2026