IHI (TYO:7013) is erecting a new building to manufacture solid rocket motors for missiles, supporting Japan's drive for a domestic defense supply chain, Nikkei reported Friday, citing President Hiroshi Ide.

The plant will sit inside IHI Aerospace's main factory in Tomioka, Gunma Prefecture. Completion is planned for fiscal 2028, while the investment size and output capacity were not disclosed, according to the report.

IHI Aerospace supplies propulsion units for surface-to-air and interceptor missiles for Japan Self‑Defense Forces, and logged revenue near 70 billion yen for the year to March, targeting a doubling in the coming years, the report said.

IHI expects 230 billion yen in defense revenue for the year to March 2026, about 14% of consolidated sales, with a longer-term aim of around 400 billion yen by the 2030s, according to the report.

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