The agreement gives Lockheed Martin access to a share of Avio’s merchant supply capacity for both programs. Lockheed Martin said the additional source would strengthen its supply chain and create opportunities to increase missile output.
“A reliable and diverse supply chain for solid rocket motors is fundamental to our strategy for a stronger defense industrial base,” said Tim Cahill, president of Lockheed Martin Missiles and Fire Control. “This strategic cooperation agreement with Avio enables us to speed up production of essential capabilities, ensuring our customers maintain their competitive edge against emerging threats.”
Avio has committed more than $500 million to new U.S. solid rocket motor production capacity. The company intends to supply multiple defense customers, drawing on parent company Avio S.p.A.’s experience in solid propulsion.
“This agreement is a major milestone for Avio USA and for the facility and team we are building in Virginia,” said James Syring, Avio USA’s chief executive. “The Lockheed Martin programs contribute to a strong foundation for the factory operations.”
“It gives us tremendous momentum as we continue construction, grow our U.S. workforce and prepare to begin manufacturing,” Syring said. Work on the Virginia facility and recruitment of its U.S. workforce are continuing.
“Avio has launched an investment of over $500M in new production capacity for SRMs in the United States with a view to become a merchant supplier to the various defense customers,” said Giulio Ranzo, Avio’s chief executive. “In this context, Avio is excited to be able to support Lockheed Martin in their effort to increase production volumes and resiliency and will put all its expertise at work to accelerate towards this goal.”
The companies did not disclose financial terms or the number of motors to be produced. They also gave no timetable for qualification or the start of manufacturing.
