The Radford Army Ammunition Plant is expected to get a $240 million upgrade.
Plant operator BAE Systems plans to replace the plant's aging nitrocellulose facility. The Roanoke Times says construction could begin in 2013.
Nitrocellulose is the base ingredient for all military ammunition.
BAE took over the plant's operation on July 1 under a 10-year contract with the federal government.
United Steelworkers Local 8-495 president Robert Stoots says BAE has hired 450 to 500 workers who formerly were employed by the plant's previous operator, Alliant Techsystems.
Union workers are scheduled to vote Thursday on a proposed contract with BAE. Results will be released Friday.