At that time, the purpose was to increase the military strength of the Beiyang Army and unify the weapons manufacturing industry.
Due to its advantageous geographical location and abundant resources such as coal, bauxite and clay, the Ordnance Industry Supervision Office in Beijing decided in 1915 to build a large military factory mainly producing ammunition and guns.
Arsenal construction was supervised by Admiral Sa Zhenbing, assisted by military engineers from Germany, Denmark and other countries; manufacturing machines were ordered from a military factory in Connecticut, and a 10-km long and 20-meter deep "air-raid shelter" was built to protect personnel.
In 1930, after the Central Plains War, the Northern Expeditionary Army under Chiang Kai-Shek occupied Gongxian County, and the arsenal was place under the management of the National Government.
In 1938, the Gongxian Arsenal was bombed by Japanese aircraft; the fifth factory for rifles was in ruins and production was suspended.