The new site, to be operated by Avio USA, is intended to serve as a vertically integrated merchant supplier, strengthening the US industrial base for both tactical and strategic propulsion systems.
Under a non-binding term sheet with Lockheed Martin, Avio USA will provide the American defence prime with preferred access to part of its solid rocket motor (SRM) production capacity, supporting Lockheed Martin’s growing demand for missile and space propulsion systems.
The arrangement is designed to bolster supply chain resilience and enhance domestic production capacity at a time when global demand for high-performance rocket motors is accelerating.
Both companies plan to finalise a strategic cooperation agreement in the near future to formalise their partnership and align long-term goals around secure, cost-effective propulsion solutions for defence and aerospace customers.
“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,” said 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.”
Avio’s chief executive, Giulio Ranzo, described the move as a defining step in the company’s global growth strategy, noting that the new facility would “bring Avio’s 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,” Ranzo said.
Vice Admiral (Ret’d) James Syring, chief executive of Avio USA, added that the collaboration “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 solid rocket motors”. He said the company aims to deliver cutting-edge propulsion systems that would “enhance the security and resilience of the American defence supply chain”.
In a parallel development, Avio has also signed a memorandum of understanding (MOU) with Raytheon, an RTX business, to support the same US facility. Like Lockheed Martin, Raytheon will receive preferred production access to meet future demand for advanced missile systems.
The MOU expands on the companies’ existing collaboration, which began in July 2024 with a contract for preliminary engineering work on the Mk104 rocket motor, followed by a purchase order covering critical design and procurement activities.
“This agreement will help establish an additional supplier of solid rocket motors within the US and demonstrates our commitment to meeting the increasing demands of our customers,” said Bob Butz, vice president of operations, supply chain and quality at Raytheon. “By leveraging Avio’s experience and unique capabilities in solid rocket propulsion development and manufacturing, we’re strengthening our capacity for critical weapon systems.”
Avio USA’s planned investment in the facility includes fully integrated production capabilities and specialised technical expertise, intended to rapidly meet customer requirements while reinforcing the US solid propulsion industrial base.
Syring said Avio is proud to partner with Raytheon on the venture.
“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 ourselves in the United States as a true vertically integrated merchant supplier.”
The twin partnerships mark a significant shift in the global rocket motor industry, which has faced capacity bottlenecks and supplier shortfalls following decades of consolidation.
With major Western defence programs, including hypersonic weapons, tactical missiles and space launch systems, competing for limited SRM output, Avio’s US expansion is expected to play a key role in diversifying and securing propulsion supply chains for the United States and its allies, including Australia.