Northrop Grumman has started construction on a facility in Utah, US, which will be the headquarters for the company’s contribution to the Ground Based Strategic Deterrent (GBSD) programme.

The new facility is set to be located near Hill Air Force Base, housing Northrop Grumman’s GBSD workforce. The establishment of the facility is expected to create 2,500 new jobs in the region.

GBSD is the US Air Force’s (USAF) strategic deterrence mission that will replace the country’s ageing Minuteman III intercontinental ballistic missile (ICBM) system.

Northrop Grumman chairman, CEO and president Kathy Warden said: “Modernising the current ICBM system is a national security priority, and we are proud to be here today to reinforce our commitment to the US Air Force on GBSD and our readiness to deliver on this critical mission.

“For more than 60 years, Northrop Grumman has supported the airforce’s ICBM programmes, from our nation’s earliest missile systems to today’s sustainment work, much of which is performed here in Utah.”

Northrop Grumman and Boeing won contracts for the GBSD’s Technology Maturation and Risk Reduction phase in August 2017.

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Last month, the USAF issued a request for proposals (RFP) for the engineering and manufacturing development (EMD) phase.

Following the RFP, media reports emerged saying Boeing pulled out of the $85bn project, expressing reservations over the procurement process.

The service expects to award the EMD contract in the fourth quarter of the fiscal year 2020.

Warden added: “We look forward to this facility serving as home to a diverse and talented workforce, dedicated to developing this next-generation capability that will advance the strategic deterrence mission for the US.”