Shaped charge warheads, research rocket motors, and pressed pellets would be among the items manufactured at the site at Ditton Priors, near Bridgnorth.
A draft licence has been approved by the Health and Safety Executive to manufacture and/or store explosives.
Local residents, however, have raised concerns about the safety of the work due to the sites proximity to homes, businesses and schools.
Other factors of concern include the transporting of materials in and out of the region; and whether the site would be a security risk.
Members of Shropshire Council's licensing and safety sub-committee will consider the application on Friday.
