Residents pressed Castelion Corporation executives about noise, environmental impacts and safety measures during a community meeting Dec. 9 as the defense contractor moves forward with plans for a hypersonic missile manufacturing facility west of Rio Rancho.
Andrew Kreitz, co-founder and chief financial officer of the California-based company, spent nearly two hours answering questions about Project Ranger, the 1,000-acre facility that will be located about 2.8 miles west of King Boulevard in unincorporated Sandoval County.
The meeting at The HUB @ Enchanted Hills drew dozens of residents from nearby communities, many raising concerns about how the facility will affect their daily lives. Rio Rancho City Councilor Bob Tyler also attended, telling residents he has been satisfied with the company’s responses to his questions.
“The company seems like a really good business,” Tyler said, describing himself as “an advocate for the city” on the project.
Castelion officially selected Sandoval County for the facility Nov. 17, ending months of speculation following community meetings in October where hundreds of residents questioned the project’s safety and environmental impacts.
Manufacturing process explained
Kreitz walked residents through the manufacturing process, describing it as similar to baking. The facility will mix dry ingredients including ammonium perchlorate, a chemical oxidizer that provides oxygen for burning, with aluminum powder as fuel and wet ingredients into a slurry. That mixture will be cast into metal tubes, cured at low temperatures for several days, then assembled with electronics, fins and other components into finished missiles.
“It really is very similar to that process,” Kreitz said, comparing it to baking.
The solid rocket motors power hypersonic missiles, which travel faster than five times the speed of sound. Kreitz said the United States faces a significant disadvantage compared to adversaries like China and Russia in hypersonic capabilities.
“Without exaggeration, they are 20 years ahead of us,” Kreitz said, explaining the company’s mission to restore U.S. manufacturing capacity for long-range weapons.
The Torrance, California-based company, founded in late 2022 by former SpaceX employees, has raised about $450 million in private capital and secured about $200 million in contracts. The team includes veterans from SpaceX’s Falcon 9 rocket and Dragon space capsule programs, as well as employees from defense contractors like Lockheed Martin and Raytheon.
Addressing resident concerns
Noise emerged as a frequent concern. Kreitz said static fire tests of rocket motors would last 10 to 30 seconds, generating sound levels comparable to a lawn mower at the distance of Northern Meadows, the closest residential community about 2.9 miles away. Tests would only occur during business hours.
“We’d be violating local noise ordinances if we did night,” Kreitz said.
Multiple residents asked about environmental impacts, particularly dust and runoff into nearby arroyos. One resident noted severe siltation problems along the Rio Grande from construction activity.
“It’s really bad,” the resident said, describing dying cottonwood trees. “I have seen it happen in a short amount of time.”
Kreitz acknowledged the concern, saying the company’s civil engineers have designed runoff mitigation systems, though he said he didn’t have detailed plans available at the meeting. Roads on site will be paved to minimize dust from vehicle traffic.
Water usage also drew questions. Kreitz said the facility would use water equivalent to about 50 households, primarily for bathrooms and sinks. No water will be used in the rocket motor production process itself.
“We don’t use any process water at the facility,” Kreitz said.
A retired geological engineer who worked on contamination cleanup at Southern California defense sites pressed about groundwater protection. Kreitz said all manufacturing occurs indoors on concrete pads to prevent leaks or spills from reaching groundwater. The company will contract with approved disposal companies to remove waste materials, including excess propellant, cleaning products and contaminated wipes.
Safety protocols and security
The facility design includes substantial setback distances between buildings as required by federal regulations, Kreitz said. In a worst-case scenario involving a fire in a processing building, the spacing would prevent flames from spreading.
Water cannot be used to fight fires involving ammonium perchlorate or aluminum powder, Kreitz confirmed. The strategy would be to evacuate personnel and let fires burn while preventing spread to other structures.
Tyler noted that Rio Rancho Fire Chief James Wenzel had raised concerns about the facility’s high-hazard classification and its effects on department resources. The city is negotiating agreements with the county and state to handle fire service responsibilities.
Security concerns also surfaced, with residents noting that children frequently ride motorcycles and side-by-sides in the area. Tyler, a former police officer, said the facility will have perimeter fencing and armed security personnel who undergo psychological evaluations similar to police officer requirements. Many security staff will need federal security clearances.
“We want a lot of these folks to have security clearances given the nature of what we’re dealing with,” Kreitz said.
Traffic and infrastructure
Several residents questioned traffic impacts on Highway 550, which already experiences heavy congestion during morning and evening commutes near Cleveland High School.
Kreitz said the company has discussed delivery timing with city officials to avoid peak traffic hours. The state plans to extend Paseo del Volcan west to the facility, providing a direct route that bypasses residential areas. Rio Rancho is contributing about $1 million toward the road extension, with the state and county providing the bulk of funding.
Current road conditions drew pointed questions. One resident described Northern Boulevard as having potholes so severe “it’s either, are they drunk, or they know where the potholes are.”
Economic impact and timeline
The facility is projected to create at least 300 jobs by the end of year five with an average salary of $100,000. Kreitz said the workforce would be split roughly evenly between engineers and technicians.
The company expects to invest more than $100 million over the first four years. Site clearing has already begun, with groundbreaking planned for early 2026.
Sandoval County has approved $125 million in industrial revenue bonds for the project. A $10 million incentive package includes $5 million from the state, $4 million from Sandoval County and up to $1 million from Rio Rancho.
No missiles will be launched from the site, Kreitz said. Flight testing will occur at Department of Defense ranges. The facility will conduct static fire tests where motors are held down on concrete test stands and ignited to collect performance data.
Kreitz said Sandia National Laboratories has completed a safety study, though the company’s environmental plume study with Sandia is still underway.
Tyler encouraged residents with ongoing concerns to contact him directly rather than posting on social media.
“If something happens out there, something’s going on that bugs you or worries your concerns, you call me,” Tyler told the crowd. “Don’t panic and start putting crap on Facebook.”
Another community meeting is scheduled for 6 to 8 p.m. Wednesday at Mariposa Community Center, 2501 Parkway Ave.