Southern Indiana Business Report
ODON – Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS), a technology company specializing in defense, national security and global markets, broke ground Tuesday on a new Indiana facility at the WestGate@Crane Technology Park near Naval Surface Warfare Center – Crane Division.
The new facility will support Kratos’ commitment to advancing national security through cutting-edge aerospace solutions and in its initial phase, is expected to create more than 100 high-tech jobs in the coming years.
“Kratos’ decision to establish operations here further cements Indiana’s position as a national leader in defense innovation and advanced manufacturing,” said Indiana Gov. Mike Braun. “This investment will not only create high-paying jobs for Hoosiers but will also strengthen our state’s role in supporting the Department of Defense’s critical missions. We are proud to welcome Kratos to Indiana and look forward to future partnership and the economic and technological benefits Kratos will bring to our defense ecosystem and the region.”
According to a press release from the Indiana Economic Development Corporation, Kratos is expected to initially invest more than $50 million to construct and equip its state-of-the-art 68,000-square-foot Indiana Payload Integration Facility (IPIF). The facility will house an office, laboratory and integration complex to support critical hypersonic launch programs, including the Multi-Service Advanced Capabilities Hypersonic Testbed (MACH-TB). Kratos’ IPIF will feature full-scale environmental testing capabilities to accelerate the development and deployment of next-generation hypersonic technologies, while its location near NSWC Crane will strengthen collaboration with military, government and industry partners.
The new facility, which is expected to reach operational readiness by the end of 2026, is expected to create more than 100 high-tech jobs with an average annual wage exceeding $80,000. The IPIF marks Kratos’ first major infrastructure investment in Indiana, with additional expansions planned to enhance support for the Department of Defense’s hypersonic and strategic deterrence programs.
“The Indiana Payload Integration Facility represents a strategic investment in our nation’s hypersonic capabilities and workforce,” said Eric DeMarco, president and CEO of Kratos. “As threats evolve, the need for rapid, affordable, and innovative solutions is paramount, and Kratos is committed to delivering them. This facility is just the beginning of our long-term investment in the region and the future of hypersonic technology.”
The news comes on the heels of Kratos’ recent announcement that the company, through its new joint venture Prometheus Energetics, will establish a new energetics, solid rocket motors (SRMs) and munitions production facility on a roughly 550-acre site in Bloomfield at the American Center for Manufacturing & Innovation (ACMI)’s National Security Industrial Hub. This investment, also located near NSWC Crane, will support Prometheus’ growth as a U.S.-based merchant supplier of SRMs.
“We are thrilled to officially welcome Kratos to the WestGate@Crane Technology Park and eagerly anticipate their success in the Indiana Uplands’ regional defense community,” said Bryant Niehoff, CEO of the Uplands Science & Technology Foundation (USTF), a nonprofit foundation established to lead the physical development and enhance the vitality of WestGate@Crane. “Collaboration is at the very foundation of our tri-county technology park. Today’s announcement is a testament to our collaborative efforts, backed by local support from the Daviess County Council and Economic Development Corporation, as well as regional and state-level commitment through the IEDC’s READI program, spearheaded in our region by the Regional Opportunity Initiatives (ROI).”
Kratos, headquartered in San Diego, is at the forefront of hypersonic and next-generation missile system development, providing affordable, high-performance solutions to meet the needs of the U.S. military and allied nations. Kratos is the only company delivering both propulsion and flyer systems and was recently selected as the prime contractor for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program under Task Area 1, leading the effort to implement affordable flight tests and increase hypersonic flight test capacity. Kratos provides innovation, disruptive capabilities, mission responsiveness and affordability to customers across its portfolio of systems.
Based on the company’s long-term growth plans in Indiana, the Indiana Economic Development Corporation (IEDC) committed to Kratos up to $9 million in the form of incentive-based tax credits, up to $7 million in regional development tax credits and up to $2 million in conditional structured performance payments to support the company’s plans to invest more than $456 million and create up to 628 new Hoosier jobs by the end of 2029. These incentives are performance-based, meaning the company is eligible to claim state benefits once Hoosiers are hired.