Italian rocket manufacturer Avio said on Monday that Raytheon and Lockheed Martin will be major customers for its planned solid rocket motor (SRM) plant in the United States.
Under separate agreements, both defense contractors will have preferred access to a share of the plant’s production, Avio said. The company has not yet disclosed the plant’s location but expects it to be operational by early 2028.
“This agreement will help establish an additional supplier of solid rocket motors within the U.S.,” said Bob Butz, vice president of operations, supply chain and quality at Raytheon, the defense arm of aerospace giant RTX.
Avio will allocate 80% of a €400 million ($466 million) capital increase to fund the new site, CEO Giulio Ranzo told Reuters in October.
“The establishment of Avio’s SRM facility will allow us to bring our proven solid propulsion expertise to the United States,” said Jim Syring, CEO of Avio USA.
The SRM market is expanding amid increased global defense spending, with countries investing in missile and tactical weapon systems to bolster military capabilities.
Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said the collaboration would strengthen “a diverse, resilient supply chain for solid rocket motors.”
Ranzo described the two U.S. supply deals as “fundamental” to Avio’s expansion strategy, adding that they give “great solidity” to its U.S. plans.
The announcement follows Leonardo’s (LDOF.MI) recent decision to reduce its stake in Avio to just over 19%, saying it would not increase its investment given its existing role in European missile maker MBDA.
