NewMarket Corporation to Increase Ammonium Perchlorate Production Capacity

NewMarket Corporation plans to increase its ammonium perchlorate production capacity through its subsidiary American Pacific Corporation (AMPAC). AMPAC is a manufacturer of specialty chemicals used in solid rocket motors for the aerospace and defense industries. The expansion aims to meet growing demand for the chemical additive.

NewMarket Corporation (NYSE: NEU), through its subsidiary American Pacific Corporation (AMPAC), is planning to increase its ammonium perchlorate production capacity. The expansion, announced on April 15, 2025, involves a capital investment of up to $100 million to construct an additional production line, aiming to increase capacity by over 50% [1].

The move is in response to the growing demand for solid rocket motors, driven by increasing needs from U.S. military and space launch programs, as well as those of U.S. allies. The project is subject to approval by NewMarket's board of directors and is scheduled for completion in 2026.

Kris Griffith, President of AMPAC, expressed excitement about the investment, highlighting the company's commitment to investing alongside its commercial partners to meet the rising global demand for missile production and space launch [1].

AMPAC, based in Cedar City, Utah, is a leading North American manufacturer of critical performance additives used in solid rocket motors for space launch and military defense applications. The company is qualified on many NASA and Department of Defense programs and has been serving these sectors for over six decades [1].

This expansion aligns with NewMarket's long-term commitment to its people, safety, and providing innovative solutions for its customers, as well as making the world a better place [1].

References:
[1] https://www.marketscreener.com/quote/stock/NEWMARKET-CORPORATION-12541/news/American-Pacific-Corporation-Announces-Production-Expansion-49665661/