A California-based defense contractor has officially selected Sandoval County as the site for a 1,000-acre hypersonic missile manufacturing campus that promises to bring more than 300 jobs with average salaries of $100,000 to the area.
Castelion announced Nov. 17 it chose Sandoval County for Project Ranger, a solid rocket motor manufacturing facility that will be located in unincorporated county land about 3 miles west of Rio Rancho city limits, according to a news release from the New Mexico Economic Development Department.
The campus is projected to generate more than $650 million in economic output over the next decade. The company plans to invest more than $100 million over the first four years of Project Ranger’s development, with additional capital to follow, according to the release.
The announcement ends months of speculation after New Mexico was named a finalist for the facility in August. However, the project has sparked significant community debate over safety, environmental impacts and taxpayer accountability.
Community concerns persist
Hundreds of residents packed community meetings in October to voice concerns about the facility’s proximity to neighborhoods, with some questioning whether the economic benefits justify the risks.
Technical documents show that emergency explosion scenarios could affect structures up to 5 miles away, with 5,933 buildings and structures within that radius, according to records reviewed by the Sandoval Signpost in October. The site sits 2.9 miles from Rio Rancho’s Northern Meadows neighborhood, with safety zones that overlap with homes, schools and parks.
Rio Rancho resident Elaine Cimino filed a 10-page written objection in November, citing concerns about groundwater contamination from ammonium perchlorate, a toxic oxidizer used in rocket motors. She noted that no baseline groundwater, air or soil testing had been conducted before approval.
Resident Michael Farrell raised concerns about water usage and aquifer impacts, though Castelion officials said the facility would use water equivalent to about 50 households, primarily for bathrooms and sinks.
At county commission meetings in October, residents questioned whether taxpayers would be “left holding the bag” if the company fails to deliver on its promises, a concern that has arisen with past corporate incentive packages in New Mexico.
Emergency response capabilities also drew scrutiny. Rio Rancho Fire Chief James Wenzel noted concerns about “limited and inconsistent” communication with his department and the effects on routine emergency services. The Rio Rancho City Council subsequently required a memorandum of understanding establishing which agency has jurisdiction over emergency response before releasing any city funds.
Taxpayer protections in place
County and state officials approved a $10 million incentive package in October under the Local Economic Development Act, with $5 million from the state, $4 million from Sandoval County and up to $1 million from Rio Rancho.
The money will be used for land acquisition and infrastructure upgrades, including the extension of Paseo del Volcan. Peter Mitchell with the New Mexico Economic Development Department told commissioners the agreement includes “100% clawbacks” if the company doesn’t meet job creation and safety benchmarks.
The county also approved $125 million in industrial revenue bonds for the project in August.
Addressing national security gap
Company officials framed the project as critical to national security.
“The reality is that the United States does not have enough manufacturing capacity for munitions, especially for long-range strike weapons and missiles. We are aiming to change that,” Andrew Kreitz, co-founder and chief financial officer of Castelion, said at the October county commission meeting.
Castelion, headquartered in Torrance, California, was founded to produce next-generation hypersonic systems at scale to help the U.S. and its allies deter global threats, according to the release.
“After a highly competitive nationwide search, we chose New Mexico for its technical talent, regional infrastructure, and history of scientific achievement,” Kreitz said in the release. “Project Ranger represents a critical step in restoring America’s capacity to produce the advanced systems our country needs.”
What officials are saying
Gov. Michelle Lujan Grisham said in the release that the project “helps carry that legacy forward — creating high-paying jobs, advancing national security and proving once again that New Mexico is where bold ideas take flight.”
U.S. Sen. Martin Heinrich said in the release: “Castelion’s new manufacturing facility in Sandoval County will strengthen our national security, grow our state’s economy, and create over 300 permanent jobs that New Mexicans can build their families around. This is a great example of what New Mexico does best: developing cutting-edge science and technology and manufacturing it right here in our state.”
Sandoval County Manager Wayne Johnson said in the release: “We appreciate Castelion’s vote of confidence by choosing Sandoval County as its next production site for rocket motor manufacturing and look forward to a mutually beneficial business relationship.”
Sandoval County Board of Commissioners Chair Michael Meek said in the release that the project “brings career opportunities to hundreds of New Mexicans through its workforce. Further, its presence here will support existing local businesses and potentially make way for new ones.”
Rob Black, cabinet secretary of the New Mexico Economic Development Department, said in the release: “Securing this investment propels our innovation economy forward, creating high-tech careers and reinforcing our position as a hub for advanced manufacturing and national security.”
State Sen. Jay Block said in the release: “I am deeply honored and thankful Castelion will be building hypersonic missiles that are needed for the defense of our country. The United States is behind in the hypersonic race, and now, because of Castelion, we will close the gap and leap ahead of our peers.”
What’s next
The manufacturing campus will produce solid rocket motors, conduct static tests and assemble components to produce finished rounds, according to the release. The company expects to break ground in early 2026.
Castelion officials told community meetings in October that no missiles will be launched from the site and no chemical synthesis will occur on-site. Flight testing will be conducted at Department of Defense ranges or at other approved facilities.
Well, if Jay Block is for it you can rest assured it’s a bad deal for county residents