(Updates with the company's response in the fourth paragraph.)

General Dynamics (GD) will invest $200 million and unwind its partnership with Turkish defense contractor Repkon as it seeks to start production of 155mm artillery shells at a Texas plant, Bloomberg reported Monday, citing people familiar with the matter.

The munitions manufacturing equipment supplied by Repkon failed to meet required standards and is expected to be replaced by hardware and management from privately held Deterrence Defense, according to the news outlet.

The additional $200 million investment would come on top of the $591 million contract the US Army awarded to General Dynamics for the Texas facility, which was designed to operate three production lines capable of manufacturing 30,000 155mm artillery shells per month, the report added.

A General Dynamics spokesperson told MT Newswires in an emailed response that "General Dynamics Ordnance and Tactical Systems and [its] US Army customer have reached an agreement on a path forward for the Mesquite facility, which includes additional GDOTS investment to complete the project."

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