Avio
Avio and Raytheon, an RTX business, signed a Memorandum of Understanding (MoU) to help Avio establish a state-of-the-art solid rocket motor (SRM) facility in the United States, serving Raytheon and other customers as a vertically integrated merchant supplier. Raytheon will have preferred access to a share of the Avio plant production capacity to meet future demand.
This strategic partnership marks another significant milestone in the collaboration between the two companies, building on a contract signed in July 2024 for preliminary engineering work on the Mk104 rocket motor and a recent purchase order to fund through Critical Design Review and procurement of long lead material for qualification.
“This agreement will help establish an additional supplier of solid rocket motors within the U.S. and demonstrates our commitment to meeting the increasing demands of our customers,” says Bob Butz, Vice President of Operations, Supply Chain and Quality at Raytheon. “By leveraging Avio’s experience and unique capabilities in solid rocket motor propulsion development and manufacturing, we’re strengthening our capacity for critical weapon systems.”
The new Avio facility will be instrumental in meeting the growing demand for advanced SRMs and will contribute to the continued success of both companies in delivering high-quality defense products. Avio and Raytheon are committed to working together to ensure the successful implementation of this initiative and to support the defense needs of the United States and its allies.
“We're proud to be partnered with Raytheon for their future production capacity needs at our new factory facility,” says VADM (Ret) James Syring, CEO of Avio USA. “We look forward to leveraging the incredible pedigree and experience of our parent company Avio S.p.A. as we build our factory and establish in the U.S. as a true vertically integrated merchant supplier.”
Avio and Lockheed Martin also signed a non-binding term sheet to support the establishment of Avio USA’s state-of-the-art solid rocket motor (SRM) facility in the United States, which expects to serve Lockheed Martin and other customers as a vertically integrated merchant supplier.
Lockheed Martin will have preferred access to a portion of the Avio USA plant production capacity to meet future demand for its products while enhancing supply chain resilience to the US industrial base for both tactical and strategic size SRMs. The parties intend to negotiate a Strategic Cooperation Agreement soon to further align with the common goal of increasing the surety of supply for cost effective propulsion systems.
“Collaboration with Avio strengthens Lockheed Martin’s commitment to a diverse, resilient supply chain for solid rocket motors—key to our 21st Century Security vision,” says Tim Cahill, president of Lockheed Martin Missiles and Fire Control. “This term sheet positions us to increase production of essential capabilities and deliver them to our customers faster as global demand grows.”
“This term sheet marks a significant milestone in Avio’s long-term growth strategy and our commitment to strengthening international relationships in the aerospace and defense sector,” says Giulio Ranzo, CEO of Avio. “The establishment of Avio USA’s SRM facility will allow us to bring our proven solid propulsion expertise to the United States, contributing to the innovation and development of a critical industrial supply chain. We are very pleased to contribute to Lockheed Martin’s ongoing success and look forward to supporting their future initiatives.”
“The commercial relationship with Lockheed Martin, set forth in this term sheet, marks a pivotal step for the future of Avio USA, solidifying our status as a trusted partner and merchant supplier for both tactical and strategic size solid rocket motors in the U.S.” says Syring. “Through this collaboration, we expect to deliver cutting-edge solid propulsion systems, enhancing the security and resilience of the American defense supply chain and strengthening the strategic bond between Avio and Lockheed Martin for years to come.”
Avio’s planned investments in fully integrated capabilities and specialized know-how are designed to promptly address customer needs, building on the company’s extensive heritage in solid rocket motor technology. This initiative will strengthen the U.S. solid propulsion industrial base, positioning Avio USA as a key contributor to the defense supply chain.
