Alzchem Group is moving ahead with a major expansion into the US defense market, selecting Bushy Park in South Carolina as the future site of a new nitroguanidine production facility.

 

The project marks a significant step in the company’s strategy to establish a U.S.-based supply chain for nitroguanidine, a critical substance used in the manufacture of propellants. The planned facility is expected to serve the US market through a contract with the US government, with investment estimated at approximately USD 150 million.

 

The expansion will be backed by funding support from the U.S. government, the state of South Carolina, and Berkeley County, underscoring the strategic importance of strengthening domestic production capabilities.

 

The South Carolina investment follows Alzchem’s recent commissioning of additional nitroguanidine capacity in Germany and represents the next phase of the company’s global growth strategy. While production will expand in the United States, intermediate products will continue to be manufactured at Alzchem’s German facilities, helping preserve value creation and employment in Germany.

 

Andreas Niedermaier, CEO of Alzchem Group AG, said: “With the decision on the location in South Carolina, we are consistently advancing our international growth strategy. Following the expansion of our capacities in Germany, we are now laying the foundation for further growth in the United States. This will strengthen the security of supply for our customers.”

 

With the site selection process complete, Alzchem will now move into the next stage of development, including advancing Front-End Engineering and Design (FEED), completing technical planning, securing regulatory approvals, and finalizing the contract with the U.S. government.

 

Construction of the new Berkeley County production facility is scheduled to begin in 2027, with operations expected to start in 2029.