“We are in industries – the space and defence ones – that have a substantial imbalance between demand and supply so we decided to invest in capacity. Business is picking up even faster in the U.S., where there is high demand for missiles, essentially,” Ranzo said. The new US plant will focus on producing solid rocket motors for missile systems, with construction set to begin in the first quarter of 2026 and operations starting by early 2028.
Eighty percent of the capital increase will fund the American facility, while the rest will support European efforts, including boosting the Vega-C rocket launch schedule and missile propulsion technologies. Ranzo also noted the company plans to invest in its supplier network, saying: “We need to make sure that the world of our suppliers does not become a bottleneck to growth.”
Avio’s defence-related business currently accounts for 20% of revenue, but the company expects this figure to reach 60% by 2035. Shareholders have also approved the option for an additional capital increase of up to 10% over the next five years, should demand in the US exceed current expectations.
James Syring, CEO of Avio USA, told Reuters that the company plans to initially target “about a third of the unmet demand” in the American market. He added that the new site will be able to scale production significantly: “The new plant will start with small motors but we have sized the factory to go up to (solid rocket motors) 50 inches (127 cm) in diameter and 10 meters (32.8 ft) in length.”
Syring concluded: “We feel it’s important to not just have defence tactical motor capability, but be able to compete long term for (all sizes) up to strategic size.” The expansion marks a strategic shift for Avio as it positions itself for long-term growth in the global defence and space sectors.
Source: Reuters.
