As part of the agreement, Lockheed Martin will receive preferred access to a portion of the facility’s production capacity to meet future product demands. The move is intended to bolster supply chain resilience for both tactical and strategic SRMs within the US industrial base.
The two companies also plan to negotiate a Strategic Cooperation Agreement in the near future. This would further align their efforts to ensure a reliable and cost-effective supply of 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. This term sheet positions us to increase production of essential capabilities and deliver them to our customers faster as global demand grows,” said Tim Cahill, president of Lockheed Martin Missiles and Fire Control.
Giulio Ranzo, CEO of Avio, stated: “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. 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.”
VADM (Ret) James Syring, CEO of Avio USA, said: “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. 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 investment plans include fully integrated capabilities and specialised expertise to respond swiftly to customer needs. The initiative will reinforce the US solid propulsion industrial base, positioning Avio USA as a vital contributor to the country’s defence supply chain.
