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Analytics and Reports, Small Arms Producer and Vendor Analytics, US Small Arms Market Analytics

JJE Capital Holdings: They Own Palmetto State Armory, AAC, H&R, Soviet Arms and More

Authored: January 11, 2026

The American small arms industry has historically been defined by a fragmented supply chain. For decades, the sector operated through a disconnected web of raw material suppliers, precision machine shops, independent brand holders, and wholesale distributors. This fragmentation created significant vulnerabilities, exposing manufacturers to supply chain volatility, fluctuating commodity costs, and political regulatory pressures. JJE Capital Holdings (JJE) has fundamentally disrupted this traditional model by constructing a vertically integrated industrial conglomerate that establishes “operational sovereignty”—the strategic capability to control the entire value chain of firearms production from the molecular level of raw manufacturing to the final point of retail sale.

Headquartered in Columbia, South Carolina, JJE Capital Holdings has evolved from the parent entity of a single burgeoning retailer—Palmetto State Armory (PSA)—into a diversified industrial powerhouse. The firm’s acquisition strategy is not merely financial; it is logistical and industrial. By acquiring critical manufacturing nodes such as Spartan Forge (aluminum forging) and DC Machine (precision barrel and receiver machining), JJE has insulated its consumer-facing brands from the upstream bottlenecks that frequently paralyze competitors. Furthermore, the strategic acquisition of heritage intellectual property—specifically the assets of the defunct Remington Outdoor Company, including Harrington & Richardson (H&R), DPMS, and Advanced Armament Company (AAC)—has allowed JJE to pivot from a budget-focused retailer to a custodian of American firearms history, serving segments ranging from entry-level hobbyists to high-end collectors and defense contractors.

This report provides an exhaustive, analyst-grade examination of the JJE Capital Holdings portfolio. It dissects the conglomerate’s corporate structure, operational synergies, and market positioning. The analysis categorizes the portfolio into four strategic pillars: Industrial Manufacturing Base, Firearms & Heritage Brands, Retail & Defense Services, and Lifestyle & Real Estate. For each entity, this report provides detailed operational profiles, location data, and strategic analysis of its role within the broader JJE ecosystem, demonstrating how a localized investment firm has reshaped the economics of the modern American arms industry.

1. Corporate Structure and Strategic Philosophy

1.1 The Genesis of JJE Capital Holdings

Location: 3850 Fernandina Road, Columbia, SC 29210

URL: jjech.com

Type: Private Equity & Industrial Holding Company

JJE Capital Holdings serves as the strategic nerve center for the conglomerate.1 Unlike traditional private equity firms that often prioritize short-term liquidity events or asset stripping, JJE operates with an industrialist philosophy centered on long-term value creation through manufacturing independence. The firm’s stated mission focuses on “reviving the American Dream” by repatriating manufacturing jobs and building a self-sustaining industrial ecosystem on American soil.2 This nationalist-industrialist ethos is not merely marketing; it is the central operational thesis that drives their acquisition strategy.

The leadership team comprises individuals with deep roots in operations, real estate, and construction, reflecting the physical nature of their investments. Jamin McCallum, the Owner and Chief Executive Officer, is the visionary behind the vertical integration strategy.3 His approach has been characterized by a refusal to accept industry standard lead times or supply constraints, preferring instead to buy or build the capacity required to meet demand. Julian Wilson (Real Estate Manager) and Edward LaRocque (Construction Manager) play pivotal roles in the rapid physical expansion of the conglomerate.3 As the group expands its retail footprint with massive “destination” brick-and-mortar stores and builds new manufacturing plants (such as the new AAC facility in Alabama or the ammo plant in South Carolina), the internal capability to manage real estate and construction becomes a strategic asset, allowing JJE to move faster than competitors who rely on external developers.

1.2 The Philosophy of Operational Sovereignty

The core differentiator of JJE Capital is its pursuit of “Operational Sovereignty.” In the firearms industry, “availability” is often a more significant driver of sales than “brand loyalty.” During the demand surges of 2012, 2016, and 2020, manufacturers who relied on third-party vendors for forgings (the raw aluminum shapes for receivers) or barrels found themselves unable to ship products.

JJE’s response was to internalize these dependencies. By owning the forge (Spartan Forge), the machine shop (DC Machine), the tool maker (Special Tool Solutions), and the ammunition plant (AAC Ammunition), JJE controls its own destiny. They are not subject to the allocation limits of a third-party vendor. This vertical integration allows JJE to:

  1. Maintain Production Velocity: When the market spikes, JJE factories prioritize JJE brands.
  2. Compress Margins: By eliminating the markup of intermediate vendors, JJE can sell finished rifles at retail prices that are often lower than the wholesale cost of competitors’ products.
  3. Innovate Rapidly: With R&D (Ferrous Engineering) co-located with manufacturing, the feedback loop from design to prototype to mass production is drastically shortened.

2. The Manufacturing Industrial Base

The foundation of JJE’s market power lies in its industrial capabilities. These entities typically do not face the consumer directly but provide the critical components that fuel the consumer-facing brands.

2.1 DC Machine: The Precision Engine

Location: 202 Thorpe Road, Summerville, SC 29483

URL: dcmachine.net

Role: High-Volume Precision Machining & Barrel Manufacturing

DC Machine is arguably the most critical operational asset in the JJE portfolio outside of Palmetto State Armory itself. Originally established as a high-precision contract manufacturer for the aerospace, medical, and automotive sectors, DC Machine was acquired to serve as the primary machining hub for JJE’s firearms production.2

Operational Capabilities:

The facility is a state-of-the-art CNC (Computer Numerical Control) operation, housing over 70 high-end machines.2 It is ISO 9001 (2008) certified and holds ITAR registration, qualifying it for defense-related manufacturing. The strategic significance of DC Machine cannot be overstated—it is one of the largest gun barrel manufacturers in the United States. In the firearms industry, the barrel is often the most difficult component to source in volume due to the specialized machinery (drilling, reaming, rifling) required. By bringing this capability in-house, JJE secured a consistent supply of barrels for its AR-15, AR-10, and AK-47 lines.

Strategic Integration:

DC Machine produces not just barrels, but also bolt carrier groups, gas blocks, and other critical steel components. The “vertical” connection here is direct: Spartan Forge provides the raw metal, and DC Machine turns it into a functional rifle component. This allows JJE to rapidly pivot production; if the market demand shifts from 16-inch carbines to 10.5-inch pistols, DC Machine can retool and redirect output far faster than a company relying on purchase orders to an external vendor.

2.2 Spartan Forge: The Raw Material Source

Location: Lincolnton, NC

URL: jjech.com/portfolio-companies/

Role: Aluminum Forging Facility

In the AR-15 supply chain, the “forging” is the bottleneck. There are only a handful of major forges in the United States that produce the raw 7075-T6 aluminum shapes that eventually become upper and lower receivers. During the 2013 and 2020 panics, these forges were booked years in advance, leaving smaller manufacturers without raw material.

Operational Capabilities:

Spartan Forge is a multi-press facility specializing in the high-pressure forging of aluminum products.2 Located in Lincolnton, NC, it sits strategically close to the South Carolina manufacturing hub. The facility produces the raw “paperweight” shapes of receivers, which are then shipped to DC Machine or PSA’s own machining centers for final cutting.

Strategic Integration:

Acquiring Spartan Forge was a defensive maneuver to secure the supply chain. It ensures that JJE brands—PSA, H&R, Lead Star, and DPMS—have prioritized access to receiver blanks. This acquisition effectively “firewalled” JJE from the raw material shortages that plague the industry.

2.3 Ferrous Engineering and Tool: The Innovation Lab

Location: West Columbia, SC

URL: jjech.com

Role: Research, Design, and Prototyping

While DC Machine handles mass production, Ferrous Engineering handles innovation. This entity operates as an integrated research and design center combined with a specialized CNC machine shop.2

Operational Capabilities:

Ferrous Engineering is tasked with taking concepts from ideation to first production. They handle the complex engineering challenges, such as reverse-engineering foreign weapons platforms (crucial for the PSA AK-V and Soviet Arms lines) or developing proprietary internal mechanisms (such as the bufferless system in the PSA JAKL).

Strategic Integration:

Separating R&D (Ferrous) from Production (DC Machine) is a mature industrial strategy. It prevents the disruption of high-volume lines for experimental runs. Ferrous Engineering allows JJE to iterate rapidly on new designs, testing prototypes and refining blueprints before handing the final “data package” to the mass production facilities.

2.4 Special Tool Solutions (STS): Complexity Management

Location: 11699 Camden Rd, Jacksonville, FL 32218

URL: jjech.com/portfolio-companies/

Role: Specialized Product Development & Tooling

Located in Jacksonville, Florida, STS provides high-end product development and design capabilities.2

Operational Capabilities:

STS focuses on “turning complex ideas into reality.” In manufacturing, “tooling” refers to the custom jigs, fixtures, and molds required to hold and shape parts during mass production. STS likely supports the broader group by designing and building these complex tools, ensuring that the production lines at DC Machine and PSA have the fixtures they need to operate efficiently. They handle “tough jobs that others do not have the capacity to do,” serving as a problem-solving node in the industrial network.

2.5 AAC Ammunition (America’s Ammo Company): The Consumable Engine

January 11. 2026: Note, AAC is “paused” while JJE sorts out how to develop gunpowder manufacturing capabilities. Click here for an article about this.

Location: Columbia, SC

URL: aacammo.com

Role: Ammunition Manufacturing (Projectiles & Cartridges)

Perhaps the most ambitious of JJE’s recent expansions is the launch of AAC Ammunition. Following the massive ammo shortage of 2020-2022, JJE recognized that selling firearms without ammunition was a vulnerability.

Operational Capabilities:

AAC Ammunition is not merely an assembler of bought components; it is a primary manufacturer. The facility utilizes advanced research and design processes to manufacture its own projectiles.2 Recent industry reports indicate they have also moved into manufacturing their own shell casings and, critically, are working toward primer independence.4 Primers are the most volatile component in the ammo supply chain, involving dangerous chemical manufacturing.

Strategic Integration:

By manufacturing the “consumable” of the industry, JJE captures recurring revenue. A customer buys a rifle once, but buys ammunition for a lifetime. The vertical integration here allows JJE to bundle products (e.g., “buy a dagger pistol, get 500 rounds of AAC 9mm”), creating a value proposition that pure-play retailers cannot match.

3. The Retail & Distribution Juggernaut

While the industrial base provides the capacity, the retail arm provides the velocity. JJE’s primary revenue engine is its massive direct-to-consumer (DTC) distribution network.

3.1 Palmetto State Armory (PSA)

Location: Online HQ in West Columbia, SC; Multiple Retail Locations (SC, NC, GA).

URL: palmettostatearmory.com

Role: Primary Retailer, Ecommerce Platform, & Manufacturer

PSA is the face of the JJE conglomerate. It operates on a high-volume, low-margin philosophy famously summarized by their mission to “sell as many guns as possible to as many law-abiding Americans as possible.”

Operational Profile:

PSA is unique in that it is both a manufacturer and a distributor. It manufactures its own line of firearms (PA-15, PSAK-47, PSA Dagger) while simultaneously serving as one of the largest online retailers for third-party brands (Sig Sauer, Glock, Vortex Optics).

  • The “PSA Ecosystem”: The company has successfully cloned the most popular platforms in the world. The PSA Dagger is a clone of the Glock 19 Gen 3 (following the patent expiration), offering compatibility with ubiquitous Glock parts at half the price. The PSAK-47 series (GF3, GF4, GF5) successfully challenged the dominance of imported AKs by offering an American-made alternative with a lifetime warranty.
  • Ecommerce Dominance: The PSA website is a high-traffic hub that drives daily engagement through “Daily Deals,” conditioning customers to check the site frequently. This digital dominance allows JJE to launch new subsidiary brands (like AAC Ammo or Soviet Arms) with zero customer acquisition cost by simply featuring them on the PSA homepage.
  • Physical Expansion: Unlike many digital-native retailers, PSA has invested heavily in physical retail. Their “superstores” in South Carolina (Columbia, Greenville, Myrtle Beach, Summerville) and expansion into North Carolina and Georgia serve as destination retail hubs, complete with indoor ranges and fishing departments.2

3.2 PSA Defense

Location: Multiple Training Centers (Columbia, Greenville, Myrtle Beach, etc.)

URL: psadefense.com

Role: Firearms Training & Education

PSA Defense represents the “software” side of the business. Owning the hardware is useless without the skill to use it. PSA Defense offers a curriculum ranging from South Carolina Concealed Weapons Permit (CWP) classes to advanced tactical carbine courses.2

Strategic Value:

This entity serves a dual purpose: risk mitigation and customer retention. By training their customers, they promote responsible ownership (mitigating political risk). Simultaneously, training creates a “sticky” relationship with the customer. A student who learns to shoot at a PSA range with a PSA instructor is statistically more likely to purchase their next firearm and ammunition from the PSA store located in the same building.

4. The Firearms & Heritage Brand Portfolio

In September 2020, the landscape of the American firearms industry shifted when Remington Outdoor Company declared bankruptcy. JJE Capital Holdings capitalized on this event to aggressively expand its portfolio, acquiring the intellectual property of several legendary brands. This move allowed JJE to diversify beyond the “budget” reputation of PSA and enter the heritage and collector markets.

4.1 Harrington & Richardson (H&R)

Location: West Columbia, SC (Manufacturing) / Sales via PSA

URL: hr1871.com

Role: Retro AR-15s & Historic Firearm Reproductions

H&R is a masterclass in brand revitalization. Historically, H&R was one of the few manufacturers (alongside Colt and GM) to produce M16A1 rifles for the US military during the Vietnam War.

The NoDak Spud Integration:

To ensure the relaunch of H&R was authentic, JJE acquired NoDak Spud, a small but legendary manufacturer known for producing the most historically accurate “retro” AR-15 receivers in the world.6 They installed Mike Wetteland, the owner of NoDak Spud, as the CEO of the new H&R.

  • Operational Focus: H&R now utilizes JJE’s manufacturing power (Spartan Forge/DC Machine) to mass-produce M16A1, XM177E2, and other historical variants with the correct grey anodizing and “Lion” roll marks.
  • Market Position: This brand dominates the “Retromod” and “Cloner” market, allowing JJE to sell AR-15s at premium price points ($1,100–$1,500) that target collectors rather than utility buyers.

4.2 Advanced Armament Company (AAC)

Location: 5021 Bradford Dr. NW, Suite A, Huntsville, AL 35805

URL: advanced-armament.com

Role: Suppressor Manufacturing

Formerly Advanced Armament Corporation, the rebranded Advanced Armament Company was another jewel from the Remington bankruptcy.8 AAC was a pioneer in the modern suppressor market but had stagnated under Remington’s ownership.

Operational Revitalization:

Under JJE, AAC was moved to a new facility in Huntsville, Alabama—a major aerospace and defense hub.9 The brand was revitalized with a focus on its classic, battle-proven designs like the Ti-RANT (pistol), Ranger (rifle), and Element (rimfire) series.

  • Market Position: The suppressor market is rapidly mainstreaming. Owning a Tier 1 suppressor brand allows JJE to capture the high-margin NFA (National Firearms Act) market and provides perfect cross-selling opportunities (e.g., PSA rifles are often sold with “suppressor-ready” muzzle devices compatible with AAC cans).

4.3 DPMS (Panther Arms)

Location: West Columbia, SC

URL: dpmsinc.com

Role: AR-15 / AR-10 Components & Rifles

DPMS was once a market leader in affordable AR-15s. Under JJE, it has been repositioned.

  • Operational Focus: DPMS continues to support the AR platform but has a specific stronghold in the AR-10 (Large Frame) market. The “DPMS Gen 1” pattern is the industry standard for AR-10s (as opposed to the Armalite pattern).
  • Strategic Role: DPMS serves as a “flank” brand. It allows JJE to sell products that might compete with PSA but capture a customer who prefers the “Panther Arms” heritage or specific configuration. It also provides a vehicle for wholesale distribution to other dealers, whereas PSA is largely exclusive to its own site.

4.4 Soviet Arms

Location: Columbia, SC (Integrated into PSA)

URL: palmettostatearmory.com/brands/soviet-arms.html

Role: Specialized AK Platform Sub-brand

Operational Context:

Following the ban on Russian ammunition and firearm imports, the supply of authentic Eastern Bloc weaponry to the US dried up. Soviet Arms is JJE’s strategic response to this geopolitical shift.

  • Operational Focus: The brand focuses on “authentic Russian parts completed with American Made receivers”.2 It produces a line of AK-style rifles and accessories (flash hiders, optics mounts) that mimic the aesthetic of Soviet-era Zenitco and Izhmash products.
  • Market Position: It caters to the “AK purist” who desires the specific look and feel of Russian hardware but can no longer buy imports. By manufacturing these parts in the US (likely at Ferrous/DC Machine), JJE fills the void left by sanctions.

4.5 Lead Star Arms

Location: West Columbia, SC

URL: leadstararms.com

Role: Competition & High-Performance Firearms

Operational Focus:

Lead Star Arms targets the competitive shooting circuit (3-Gun, USPSA). Their products are characterized by skeletonized receivers (to reduce weight), aggressive styling, and match-grade components.

  • Market Position: This is the “Race Gun” brand. It contrasts sharply with the “Duty/Utility” focus of PSA and the “History” focus of H&R. It captures the high-disposable-income demographic of competitive shooters who require specialized gear.

4.6 The Strategic Reserves (Dormant Brands)

JJE also holds valuable IP that is currently less active or dormant, likely serving as strategic reserves for future expansion.

  • Parker (Parker Brothers): A legendary American shotgun maker known for high-end side-by-sides. JJE acquired this brand in the Remington auction.10 It is currently dormant, but represents a potential future entry into the luxury sporting shotgun market to compete with brands like Browning or Beretta.
  • Stormlake: Formerly a manufacturer of match-grade pistol barrels. Given DC Machine’s massive barrel capabilities, the brand Stormlake is currently dormant, but its technology and tapers have likely been absorbed into DC Machine’s production lines for PSA Dagger barrels.11

5. Lifestyle, Services, and Real Estate

JJE understands that the “Gun Culture” is a lifestyle that extends beyond the range. Their portfolio includes service and lifestyle brands designed to capture “share of wallet” from their core demographic even when they aren’t buying hardware.

5.1 Caliber Coffee

Location: 3850 Fernandina Road, Columbia, SC 29210

URL: calibercoffeecompany.com

Role: Coffee Roasting & Lifestyle Brand

Operational Focus:

Caliber Coffee is a vertically integrated coffee roaster that markets explicitly to the 2nd Amendment community. Products feature names like “.22 Light Roast” and “.300 Blackout Dark Roast.”

  • Strategic Value: This serves as a low-cost “add-on” item for ecommerce orders (increasing average order value) and enhances the in-store experience at PSA retail locations. It reinforces the brand’s identity as a lifestyle choice, not just a retailer.

5.2 Right to Bear

Location: Columbia, SC (HQ) / National Coverage

URL: protectwithbear.com

Role: Self-Defense Liability Insurance

Operational Focus:

Right to Bear provides self-defense liability insurance, covering legal fees and civil liability for gun owners who are forced to use their weapons in self-defense.2

  • Strategic Value: As firearm ownership expands, so does the fear of legal persecution. This service captures recurring monthly revenue (subscription model), a rarity in the durable goods firearms market. It complements the hardware sale perfectly: “You bought the gun for protection; now buy the insurance to protect your freedom.”

5.3 Palmetto Outdoors

Location: Columbia, SC

URL: jjech.com/portfolio-companies/

Role: Shooting Sports Facility

Operational Focus:

A full-service outdoor shooting facility offering skeet, trap, 5-stand, and rifle/pistol ranges.2

  • Strategic Value: Ranges are the infrastructure of the industry. By owning the place where customers use the product, JJE ensures distinct localized demand for their ammunition and firearms, fostering a local community of active shooters.

5.4 Commercial Properties of South Carolina

Location: Columbia, SC

URL: jjech.com/portfolio-companies/

Role: Commercial Real Estate Management

Operational Focus:

This entity manages the extensive real estate portfolio of the group. Given the political polarization of the firearms industry, many gun companies face difficulties leasing prime commercial real estate from traditional landlords.

  • Strategic Value: JJE’s strategy of owning their own dirt—for their factories, warehouses, and superstores—insulates them from “cancel culture” in the real estate market. This subsidiary manages these assets, ensuring the operational companies have stable, friendly leases.

5.5 Kronos Knives

Location: Sold via PSA

URL: kronosknives.com

Role: Edged Weapons & Tools

Operational Focus:

Kronos Knives features exclusive designs by master bladesmiths like Ken Onion and Justin Gingrich.2

  • Strategic Value: Knives are a natural adjacent category for gun owners. By creating a house brand, JJE captures the margin that would otherwise go to third-party knife brands (like Kershaw or Benchmade) sold on their site.

6. Comprehensive Holdings Matrix

The following matrix provides a consolidated view of the active entities within the JJE Capital Holdings portfolio, summarizing their location, digital presence, and operational status.

Company NamePrimary FunctionLocationWebsiteStatus
Palmetto State ArmoryRetail / ManufacturingWest Columbia, SCpalmettostatearmory.comActive
DC MachinePrecision MachiningSummerville, SCdcmachine.netActive
Spartan ForgeAluminum ForgingLincolnton, NCN/AActive
Ferrous EngineeringR&D / PrototypingWest Columbia, SCN/AActive
AAC AmmunitionAmmo ManufacturingColumbia, SCaacammo.comActive
Advanced Armament Co.SuppressorsHuntsville, ALadvanced-armament.comActive
H&R (Harrington & Richardson)Retro FirearmsWest Columbia, SChr1871.comActive
DPMSFirearms (AR-10/15)West Columbia, SCdpmsinc.comActive
Lead Star ArmsCompetition FirearmsWest Columbia, SCleadstararms.comActive
Soviet ArmsAK Platform BrandColumbia, SCpalmettostatearmory.comActive
PSA DefenseTraining & EducationMultiple Locations, SCpsadefense.comActive
Special Tool SolutionsTooling & DesignJacksonville, FLN/AActive
Caliber CoffeeCoffee RoasterColumbia, SCcalibercoffeecompany.comActive
Right to BearInsuranceColumbia, SCprotectwithbear.comActive
Kronos KnivesKnives / ToolsN/Akronosknives.comActive
Palmetto OutdoorsShooting RangeColumbia, SCN/AActive
ParkerShotguns (Heritage)N/AN/ADormant
StormlakePistol BarrelsN/AN/ADormant

7. Conclusion: The New Industrial Model

JJE Capital Holdings represents a paradigm shift in the American firearms industry. While competitors have often pursued strategies of outsourcing and asset-light operations, JJE has doubled down on heavy industry and vertical integration. By effectively “insourcing” every aspect of the supply chain—from the forge to the retail counter—JJE has built a business model that is uniquely resilient to the volatility that characterizes the firearms market.

The conglomerate’s structure allows it to absorb shocks that would cripple smaller competitors. When ammunition is scarce, they make their own. When barrels are unavailable, they machine their own. When imports are banned, they reverse-engineer and manufacture domestic alternatives. This operational sovereignty, combined with a diversified portfolio of brands that appeals to every segment of the shooting public, positions JJE Capital Holdings not just as a participant in the industry, but as one of its most dominant and self-sufficient architects.

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Works cited

  1. JJE Capital Holdings – A Private Equity Firm Reviving the American Dream, accessed January 10, 2026, https://jjech.com/
  2. Portfolio Companies – JJE Capital Holdings, accessed January 10, 2026, https://jjech.com/portfolio-companies/
  3. About Us – JJE Capital Holdings, accessed January 10, 2026, https://jjech.com/about-us/
  4. America’s Ammo Company Factory Tour – How Ammo Gets Made – Lynx Defense, accessed January 10, 2026, https://lynxdefense.com/tour-americas-ammo-company-aac/
  5. About Palmetto State Armory, accessed January 10, 2026, https://palmettostatearmory.com/about-psa.html
  6. This classic firearms manufacturer is back with retro M16s – WeAreTheMighty.com, accessed January 10, 2026, https://www.wearethemighty.com/tactical/this-classic-firearms-manufacturer-is-back-with-retro-m16s/
  7. Palmetto State Armory Parent Company JJE to Acquire Nodak Spud – The Firearm Blog, accessed January 10, 2026, https://www.thefirearmblog.com/blog/2021/12/22/palmetto-state-armory-parent-company-jje-will-acquire-nodak-spud/
  8. Bankrupt Remington Sold Off: Here Are The Winners – Pew Pew Tactical, accessed January 10, 2026, https://www.pewpewtactical.com/bankrupt-remington-sold-off/
  9. Advanced Armament Corporation – Wikipedia, accessed January 10, 2026, https://en.wikipedia.org/wiki/Advanced_Armament_Corporation
  10. Remington Outdoor To Be Broken Up In Bankruptcy Sale | SGB Media Online, accessed January 10, 2026, https://sgbonline.com/remington-outdoor-to-be-broken-up-in-bankruptcy-sale/
  11. Remington: Who Owns the Brand & What Happened to its Intellectual Property?, accessed January 10, 2026, https://www.pewpewtactical.com/who-owns-remington-brand/
Ammunition Analytics, Analytics and Reports, Small Arms Producer and Vendor Analytics, US Small Arms Market Analytics

JJE Capital Pauses AAC Ammo Production Facility and Plans to Build Gunpowder Production Facility

This report serves as a critical update regarding the operational instability observed at the Advanced Armament Company (AAC) ammunition manufacturing facility in West Columbia, South Carolina. As of January 10, 2026, the situation has evolved from a reported “temporary production pause” into a confirmed, systemic operational contraction with profound implications for the United States commercial small arms market. The developments observed over the last five weeks represent a fundamental structural shift—a “decoupling”—of the civilian ammunition sector from the National Defense Industrial Base (DIB).

The initial ambiguity surrounding the status of the AAC facility has been resolved through a combination of federal regulatory filings, definitive supply chain data, and forensic analysis of market behavior. We can now confirm that JJE Capital Holdings, the parent entity of Palmetto State Armory (PSA) and AAC, has initiated a formal wind-down of its current ammunition assembly operations, driven by a catastrophic unavailability of energetic precursors.

The Evolution of the Crisis: From Speculation to Confirmation

On December 4, 2025, industry observers noted early signals of distress within PSA’s vertical integration strategy. At that time, company representatives characterized the production halt as a short-term measure to address an “unforeseen powder shortage”.7 However, data emerging in early January 2026 has crystallized the severity of the situation. The confirmation of mass layoffs via the South Carolina Department of Employment and Workforce, effective January 30, 2026, indicates that the facility is entering a state of “cold idle” rather than a momentary pause.1

This operational freeze coincides with a significant pivot in JJE Capital Holdings’ long-term strategy. Recognizing that reliance on Tier 1 defense contractors for critical energetic components is no longer a viable business model for a high-volume civilian manufacturer, PSA leadership has announced an ambitious plan to construct a proprietary gunpowder manufacturing facility, potentially in partnership with another entity.7

Strategic Implications for the Market

The withdrawal of AAC from the manufacturing landscape has removed the primary deflationary force in the US commercial ammunition market. For the past three years, AAC acted as a “price anchor,” utilizing its vertical integration of brass and projectiles to undercut legacy manufacturers. With AAC’s volume removed, the market has seen an immediate reversion to inflationary pricing mechanics. Competitors have already capitalized on this vacuum, with Winchester implementing price increases of 3% to 8% effective January 1, 2026.3

Furthermore, the timing of this supply collapse creates a “perfect storm” of scarcity when juxtaposed against demand-side shocks. The recent legal victories in the Ninth Circuit Court of Appeals regarding the Second Amendment have reopened the California market to standard-capacity components and ammunition, creating a surge in demand precisely as the supply of affordable domestic ammunition hits zero.4

1. The Energetics Crisis: A Root Cause Engineering Analysis

To understand the paralysis of the AAC plant, one must look upstream to the raw material crisis affecting the entire US small arms ecosystem. The manufacture of modern smokeless propellant is a complex chemical engineering feat reliant on a narrow, fragile supply chain of nitrocellulose, nitroglycerin, and stabilizing agents.

1.1 The Fragility of the Domestic Energetics Base

The United States ammunition industry operates on a tiered system of dependency. At the top are the Tier 1 manufacturers—primarily Olin Winchester and BAE Systems. These entities control the domestic production of “ball powder,” which is the industry standard for 5.56 NATO and 9mm Luger loading. Historically, the commercial market has subsisted on the “spillover” capacity of these Tier 1 plants. However, in Q4 2025, two catastrophic factors converged to eliminate this spillover entirely.

1.2 The AES Facility Explosion: A Critical Node Failure

The primary catalyst for the current shortage was the catastrophic failure at the AES facility in Tennessee in late 2025. This facility was a critical node in the precursor supply chain, responsible for processing specific grades of nitrocellulose and other energetic inputs required for the final blending of smokeless powder,.

The destruction of this capacity sent a shockwave through the industry. Data suggests that nearly 85% of the remaining available propellant volume was immediately diverted to fulfill priority DoD contracts, which are protected by “DX” or “DO” ratings under the Defense Production Act. These ratings legally compel suppliers to prioritize government orders over all commercial obligations.

1.3 The “Tier 2” Vulnerability and the False Security of Partial Integration

AAC’s business model was predicated on Tier 2 vertical integration. JJE Capital Holdings invested millions into machinery to manufacture brass cases and projectiles in-house. However, they remained strictly assemblers regarding propellant (powder). This partial integration created a false sense of security. When St. Marks Powder redirected its allocation, AAC was left with commercially fatal options. Internal communications suggest that purchasing powder at inflated spot market rates would have necessitated raising the retail price of a standard 50-round box of 9mm ammunition from ~$19.99 to approximately ~$60.00.7

2. Operational Forensic Analysis: The Status of the West Columbia Facility

The most significant development since the initial December 4 report is the clarification of the “pause” through definitive regulatory filings. While forum representatives utilized the softer language of a “temporary pause,” federal labor data paints a definitive picture.

2.1 WARN Notice Verification and Labor Implications

The Worker Adjustment and Retraining Notification (WARN) Act data for South Carolina serves as the “smoking gun” that confirms the depth of the shutdown. The filings explicitly list “SC Industrial Holdings (dba Palmetto State Armory)” as filing for a “Temporary Closure” affecting 78 employees.

Key Regulatory Data Points:

  • Notice Date: December 1, 2025.
  • Layoff Effective Date: January 30, 2026.1
  • Location: 201 and 230 Metropolitan Dr., West Columbia, SC 29170.
  • Classification: Temporary Closure.

The magnitude of this layoff—78 employees—likely represents the entirety of the production line staff across multiple shifts, including machine operators and material handlers. Retaining only a skeleton crew indicates that the facility is entering a “cold idle” state.

2.2 Asset Utilization and Opportunity Cost

With the layoff date set for January 30, 2026, the facility is currently in a “wind-down” phase. The opportunity cost is massive. AAC was intended to be the volume engine for PSA’s firearm sales; without cheap AAC ammo, the value proposition of a budget AR-15 diminishes.

3. Quality Control Post-Mortem: The Engineering of Failure

Serious engineering failures in AAC’s product line—specifically the 5.56 NATO and.300 Blackout loads—have continued to surface in January 2026 reviews.

3.1 Jacket Separation Phenomena: A Manufacturing Defect

Multiple user reports describe a critical failure mode known as “jacket separation,” particularly affecting the Sabre Blade Black Tip and OTM projectiles.8 This failure mode typically points to a breakdown in the bonding process or inconsistencies in jacket thickness. If the copper jacket is too thin or brittle due to improper annealing, the centrifugal force of a 300,000 RPM spin can rip the jacket apart inside a suppressor.

3.2 Internal Ballistics: Primer Pocket Leaks and Overpressure

Reports of “popped primers” and blown case heads in 77gr OTM loads indicate severe overpressure events.9 It is highly probable that during the onset of the powder shortage, AAC engineers were forced to blend different lots of powder or utilize “non-standard” canister grade powders to keep production lines running.

3.3 Warranty Implications and Liability

Recent data indicates that PSA’s warranty policies are being strictly enforced to exclude damage resulting from “substandard, reloaded or defective ammunition” [12],. Consumers have reported being “ghosted” by customer service regarding ammo-related Return Merchandise Authorization (RMA) claims.10

4. Strategic Pivot: Vertical Integration 2.0 (Propellant Manufacturing)

PSA has announced that it will construct its own gunpowder facility to bypass the broken supply chain.7 This represents a move from Tier 2 Integration (Assembly) to Tier 1 Integration (Raw Material Synthesis).

4.1 Engineering Feasibility & Timeline Analysis

PSA representatives have cited a timeline of “about a year” for this new facility to come online.7 From an engineering perspective, this is highly optimistic for a “greenfield” project due to EPA permitting and explosive safety siting requirements. The forum mention of “working with another company” strongly supports a Joint Venture (JV) hypothesis, likely with an existing chemical entity.

5. Economic & Market Dynamics: Pricing and Inventory (Jan 2026)

5.1 The “Anchor” is Gone: Inflationary Mechanics

With AAC inventory drying up, the floor price for ammunition has risen.

  • Competitor Price Hikes: Effective January 1, 2026, Winchester implemented price increases of 3% to 8%.3
  • Current Spot Prices: 5.56 NATO is trending toward $0.50 – $0.60/round for basic ball ammo, and 9mm Luger is trending toward $0.28 – $0.32/round.11

In a twist of irony, just as AAC halted production, the demand signal from one of the largest markets in the US—California—turned aggressively positive.

6.1 The Ninth Circuit Decision

On January 2, 2026, the Ninth Circuit Court of Appeals issued a ruling in Baird v. Bonta declaring California’s open carry bans unconstitutional.4

6.2 PSA’s Strategic Response

PSA CEO Jamin McCallum released a statement declaring the decision a “victory for the Second Amendment”.5 PSA has stated they will prioritize shipments to California once the decision is finalized.5 This likely means that the dwindling remaining stock of AAC ammunition will be diverted to the California market, accelerating scarcity for the rest of the nation.

7. Forecast & Strategic Recommendations (Q1 – Q4 2026)

Based on the engineering, regulatory, and economic data analyzed, we project the following scenarios for 2026.

7.1 Recommendations for Stakeholders

  • For Retailers: Diversify supply chains to European imports (Fiocchi, Norma, PPU) which are less affected by the US-specific AES/St. Marks bottleneck.
  • For Consumers: Verify the “Lot Number” of any AAC ammo purchased on the secondary market. Avoid lots from late 2025 to mitigate the risk of jacket separation.
  • For Investors: Monitor JJE Capital Holdings’ filings for “Joint Venture” announcements regarding the new propellant plant.

8. Conclusion

The developments of January 2026 confirm that the Advanced Armament Company (AAC) is effectively offline as a mass-producer of ammunition for the current calendar year. The “pause” has hardened into a strategic retreat, evidenced by the layoff of the production workforce scheduled for January 30, 2026.1 JJE Capital Holdings has correctly identified that vertical integration of energetics is the only way to survive, but the timeline for such a capability is measured in years, not quarters.

If you find this post useful, please share the link on Facebook, with your friends, etc. Your support is much appreciated and if you have any feedback, please email me at in**@*********ps.com. Please note that for links to other websites, we are only paid if there is an affiliate program such as Avantlink, Impact, Amazon and eBay and only if you purchase something. If you’d like to directly contribute towards our continued reporting, please visit our funding page.

Sources Used

  1. Latest Layoffs in South Carolina – WARNTracker.com, accessed January 10, 2026, https://www.warntracker.com/?state=SC
  2. SC Industrial Holdings, LLC complete WARN notice layoff history on Dec 2025, accessed January 10, 2026, https://www.warntracker.com/company/sc-industrial-holdings
  3. Federal appeals court halts implementation of California’s climate disclosure law, accessed January 10, 2026, https://www.utilitydive.com/news/ninth-circuit-court-halts-implementation-of-california-climate-law-sb-261/805885/
  4. Baird v. Bonta – Ninth Circuit Court of Appeals, accessed January 10, 2026, https://cdn.ca9.uscourts.gov/datastore/opinions/2026/01/02/24-565.pdf
  5. California Ammo Buyers Guide | Palmetto State Armory, accessed January 10, 2026, https://palmettostatearmory.com/help-center/faq/california-ammo-buying-guide.html
  6. AAC Ammo pausing production – Ammunition – Palmetto State Armory | Forum, accessed January 10, 2026, https://palmettostatearmory.com/forum/t/aac-ammo-pausing-production/42812
  7. AAC ammo grenading rifles | Sniper’s Hide Forum, accessed January 10, 2026, https://www.snipershide.com/shooting/threads/aac-ammo-grenading-rifles.7256896/
  8. Aac 77gr otm listings – #27 by bfoosh006 – General Discussion – Palmetto State Armory, accessed January 10, 2026, https://palmettostatearmory.com/forum/t/aac-77gr-otm-listings/40580/27
  9. Ghosted by PSA Warranty Dept. : r/ar15 – Reddit, accessed January 10, 2026, https://www.reddit.com/r/ar15/comments/1mug3v4/ghosted_by_psa_warranty_dept/
  10. 5.56 Ammo for Sale | Buy 556 Ammo Online at GunBroker, accessed January 10, 2026, https://www.gunbroker.com/5.56-ammo/search?keywords=5.56&s=f&cats=1012
  11. Warranty Policy | Palmetto State Armory, accessed January 10, 2026, https://palmettostatearmory.com/help-center/terms-conditions/terms-warranty-policy.html
Ammunition, Shooting in General

What’s Up With Palmetto State Armory And AAC Ammo?

In 2021, there were reports that Palmetto State Armory (PSA) was going to start producing their own ammo. For those of you who don’t know PSA, they started with discounted AR parts and sporting goods stores and grew rapidly now producing a variety of platforms including AK rifles and pistols and a Glock 19 compatible pistol known as the Dagger.

At any rate, the ammunition market could not keep up with demand starting with the fear of what would happen when Biden took office, the pandemic, etc. When and where there is unmet demand there is potential opportunity and that is what PSA went after. PSA is investing in a new ammo plant being built in Columbia, SC, with plans for it to be fully operational in 2023 using the letters AAC – America’s Ammo Company.

Uh… wait … isn’t there already Advanced Armament Corporation (AAC) using a similar logo? Why yes, there was. Emphasis on “was”. You see, AAC was a brand owned by Vista along with Remington. When Vista tanked, the parent company of PSA, JJE Capital, bought them so AAC is a sister company to PSA.

JJE Capital also now owns DPMS Panther Arms, Stormlake, AAC, H&R and Parker Brands. The JJE website doesn’t mention those but I read them in another post about the sell-off of Vista. JJE does identify PSA Defense (safety and training), Palmetto State Armory (PSA), and Palmetto Outdoors Shooting Facility.

11/12/22 Update – PSA has a new sister company – Caliber Coffee. Plus there is an insurance company that they’ve had for a while that I overlooked – Right to Bear – that sells carry/self-defense insurance.

PSA itself is actually a family of companies including: DC Machine, Ferrous Engineering, Special Tool Solutions, Spartan Forging and Lead Star Arms. This means these firms are owned by JJE Capital as well.

Okay, returning to Advanced Armament Corporation’s fate: Going forward AAC was split into two divisions – AAC suppressors and firearms (which are to be resurrected) and then AAC Ammo adopted the slogan “America’s Ammo Company”.

What about the ammo?

When I first heard about it, they planned to stick to major calibers – 5.56 NATO, 7.62×51 NATO, 5.45×39, 7.62×39, 7.62x54r and 9×19 Luger but that was hearsay. Now they are still ramping up I am sure but what is on the PSA website right now as I write this post are some components – 9mm 115 gr, and .223 55gr that are in stock. For ammo, they list 9mm 115gr FMJ and 9mm 124gr FMJ and both are in stock.

These are 1,000 AAC .223(.224) 55gr projectiles ready for reloaders. For folks unfamiliar, these are just the bullets – not the entire cartridges.

Some of the items have one to four reviews – it’s all new after all and they are largely scoring 4-5 starts. One reviewer criticized the quality of the .223 (.224) 55gr bullets/projectiles and said accuracy suffered.

This is 9mm 115gr FMJ ammunition. They have 9mm 124gr as well.

Conclusion

I think it’s good for all of us that PSA/JJE has entered the ammunition market. There was a blog post back in October 2021 that they had spent $100 million on starting up ammunition production including primers up to that point – I’ve not seen a total amount referenced. Clearly they are just getting started and it will very interesting to see how they do over time as they come up to full production.

All photos are the property of Palmetto State Armory.

Note, I have to buy all of my parts – nothing here was paid for by sponsors, etc. I do make a small amount if you click on an ad and buy something but that is it. You’re getting my real opinion on stuff.

If you find this post useful, please share the link on Facebook, with your friends, etc. Your support is much appreciated and if you have any feedback, please email me at in**@*********ps.com. Please note that for links to other websites, we are only paid if there is an affiliate program such as Avantlink, Impact, Amazon and eBay and only if you purchase something. If you’d like to directly contribute towards our continued reporting, please visit our funding page.