General Atomics announced Wednesday that it will add 128,000 square feet (11,891 square meters) to its existing building to make and assemble lasers for government and commercial customers.
San Diego-based General Atomics says it needs to expand because its product line is diversifying.
Mississippi Development Authority spokeswoman Tammy Craft says General Atomics will get a $510,000 state grant to help pay for equipment costs. Lee County is expected to grant property tax breaks worth about $1.1 million over 10 years.
General Atomics currently has 256 workers in Shannon who, executives say, make $50,000 a year, on average.
The company has announced three expansions in Shannon since 2013.