PH, US, allies discuss Luzon ammo depot
The Aurora Pacific Economic Zone and Freeport Authority (Apeco) is open to hosting a US-linked ammunition facility in Casiguran, Luzon, a proposal criticized by China as potentially 'backfiring'.
The Philippines, United States, and allied nations are actively discussing plans to establish a major ammunition production facility in Luzon, with the Aurora Pacific Economic Zone and Freeport Authority (APECO) in Casiguran, Aurora expressing openness to host the facility. The proposal emerged in March 2026 through the Partnership for Indo-Pacific Industrial Resilience (PIPIR), a 16-member US-led defense manufacturing coalition founded in 2024 to reduce supply chain risks and produce military equipment closer to potential conflict zones. The facility would focus on assembling and packaging 30mm-by-173mm ammunition rounds used by maritime and coastal defense platforms that the Philippine military increasingly relies on.
Virginia-based defense supply chain company Anglicotech LLC has shown investment interest in APECO, having conducted a site inspection in August 2025 and already operating in Subic since 2024, providing logistics and support to both the Armed Forces of the Philippines and US Department of Defense. The PIPIR coalition agreed to assess funding for the ammunition production line while also advancing a Japan-led program for manufacturing solid rocket motors and developing regional cooperation on small military drones with common standards.
Philippine officials have expressed mixed reactions to the proposal. Senator Win Gatchalian endorsed the plan as favorable for job creation, technology transfer, and self-reliance under the Self-Reliant Defense Posture Revitalization Act (RA 12024), provided strict national security measures are enforced. However, the Makabayan bloc lawmakers, including Representatives Tinio, Elago, and Co, urged President Ferdinand Marcos Jr. to reject the facility, warning it would integrate the Philippines into the US "war industry," risk making the country a "war target," and divert resources from economic needs amid inflation.
China has issued strong warnings against the proposed facility, with Foreign Ministry spokesman Lin Jian stating on March 26, 2026 that if the Philippines becomes "a powder keg and ammunition depot, it will only backfire on itself." Beijing views the facility not as isolated infrastructure but as part of a wider network of joint defense agreements and logistics hubs across the Indo-Pacific that could escalate regional tensions. The Chinese government cautioned that the US and its allies should avoid introducing "bloc confrontation, conflict and the chaos of war into the Asia-Pacific," particularly amid ongoing territorial disputes with Manila over the South China Sea.
The proposed ammunition facility represents one of the most significant American defense investments in the Philippines since the Cold War, according to Philippine Defense Secretary Gilberto Teodoro. The discussions occur within the broader context of APECO's development plans, including the Casiguran International New Port project designed as a trans-Pacific gateway for manufacturing and logistics, positioning the economic zone as a strategic location for regional supply chains amid shifting global maritime trade routes and geopolitical tensions.
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